A Federal Reserve interest rate hike seems appropriate later this year despite muted growth in the second quarter, a top Fed official said Friday.
The timing of a move to hike rates depends largely on economic outlook, said William Dudley, president of the New York Federal Reserve, in prepared remarks Friday afternoon. He added that he expects U.S. growth to pick up, saying he has greater confidence inflation is moving back to the central bank's 2 percent target.
Dudley—a voting member of the Fed's policy making committee—noted that he sees a shallow increase for rates. "Turbulence" in markets seems likely when the central increases rates, he said. (Tweet this)