Federal Reserve Bank of New York President William Dudley said it isn’t unreasonable to expect the central bank to announce plans in September to start trimming its balance sheet and said he supports another interest-rate increase this year if the economy evolves as he expects.
“I would expect — I would be in favor of doing another rate hike later this year” if the economy holds up, Dudley said, speaking in an interview with the Associated Press.
Expectations for a September announcement on when the Fed will begin to wind down its balance sheet weren’t “unreasonable,” he said. A political debate over the debt ceiling is unlikely to have a “big impact” on that timetable because the central bank could announce the start of the program but delay the actual date.
“The plan is out there. It’s been, I think, generally well-received, and fully anticipated,” Dudley said of the outline for