Tight U.S. labor market should push inflation higher -Fed's Dudley

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PLATTSBURG, NY, June 19 (Reuters) - U.S. inflation is a bit
low but should rise alongside wages as the labor market
continues to improve, allowing the Federal Reserve to continue
gradually tightening U.S. monetary policy, New York Fed
President William Dudley said on Monday.
    "This is actually a pretty good place to be" with
unemployment at 4.3 percent and inflation at about 1.5 percent,
Dudley, an influential policymaker and close ally of Fed Chair
Janet Yellen, told a chamber of commerce in Plattsburg, New
    "We are pretty close to full employment. Inflation is a
little lower than what we would like, but we think that if the
labor market continues to tighten, wages will gradually pick up
and with that, inflation will gradually get back to 2 percent."

 (Reporting by Jonathan Spicer; Editing by Bernadette Baum)
 ((jonathan.spicer@thomsonreuters.com; +1 646 223 6253; Reuters
Messaging: jonathan.spicer.thomsonreuters.com@reuters.netwww.twitter.com/jonathanspicer))


This article appears in: Politics , Stocks , World Markets , Economy

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