The Federal Reserve is likely to raise interest rates this summer if the economy meets the central bank's expectations, a top official at the central bank said Thursday.
"To reiterate what some of my colleagues have said, June is definitely a live meeting," New York Fed President William Dudley, a voting member of the Federal Open Market Committee, said. "[It] depends on how the economy is going to evolve."
"Looking at the market expectations, it looks like June is roughly one-third of a percent and a tightening through the July meeting looks like about 60 percent in Fed funds futures market," he said. "Clearly looking back a few days ago I think there's a pretty strong sense among FOMC membership that the market was not putting gin a sufficient probability in June or July meeting."
He also said is is "quite pleased" to see the probability of a rate hike rising.