U.S. Economic Prospects at Best 'Modest,'
says NY Fed President Dudley at UAlbany
Lauds UAlbany Programs in Financial Market Regulation and Nanotechnology at Breakfast Speech in University Hall
ALBANY, N.Y. - (November 18, 2011, from Dow Jones Newswires)- The U.S. economy's growth prospects remain modest at best, calling for continued Federal Reserve action to generate a better level of activity, a top U.S. central bank official said Friday.
Federal Reserve Bank of New York President William Dudley speaks at University Hall.
"The Fed is doing – and will continue to do – everything within its power to promote jobs and price stability," Federal Reserve Bank of New York President William Dudley said. "While there are some bright spots in the U.S. economy and the financial system, strong headwinds are preventing a more vigorous recovery," he said.
Dudley's comments, which applauded University at Albany program efforts in financial market regulation and nanotechnology, came in a speech before a breakfast gathering in UAlbany's University Hall. [Dudley's entire UAlbany talk may be viewed here.]
Much of what he had to say reprised comments given Thursday in a speech and a television interview. The vice chairman of the central bank's monetary policy setting Federal Open Market Committee has shown a willingness to consider having the Fed push forward with providing even more stimulus to the economy, and in his remarks Thursday, Dudley said the Fed might start to boost its holdings of mortgage securities in a bid to help drive up growth.
Much of Dudley's speech Friday was centered on economic conditions in Albany, and he explained to the audience how the Fed functions.
Dudley repeated that the economy continues "to face significant downside risks, mostly related to the stress in the euro zone," and as it now stands, he sees growth of about 2.75% next year. He also said "the decline of unemployment over the next year is likely to be modest."
The central banker said he expects inflation pressures to cool. "Given current expectations for the path of energy prices--taken from futures markets--consumer price inflation on a year-over-year basis should continue to fall over the next few months," Dudley said.
The official then took questions from the audience.