The U.S. economy's "reasonably favorable'' prospects are not yet good enough for the FederalReserve to stop providing highly accommodative monetary policy, an influential U.S. central banker said on Friday.
New York Fed President William Dudley outlined some bright spots in the long U.S. recovery from recession. But he stressed that the labor market is still hobbled, saying in a speech he would like to see faster economic growth and more rapid progress in lowering unemployment and raising inflation.
Dudley did not comment specifically on the Fed's twin policies of bond-buying and near-zero interest rates. And while his comments on the economy were relatively upbeat, his dovish comments on policy reinforces the notion that the Fed is nowhere near ready to tighten.