Federal Reserve Policymaker Waves Caution Flag
It may be slowing down. That’s the message from William Dudley, president of the Fed’s New York bank, who says the U.S. economy is suffering from weaker gains in jobs and retail sales, and a drag on growth as companies trim inventories. Most traders no longer foresee an interest rate boost this year, and many money managers who favored a September hike now believe the Fed missed its window. Dudley defended the central bank against recent criticism, saying he still favors an increase … if the economy performs in line with his forecast.