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Fed's Dudley says US inflation expectations 'seem to be well-anchored'

William Dudley, president and chief executive officer of the Federal Reserve Bank of New York.
Andrew Harrer | Bloomberg | Getty Images

New York Fed President Bill Dudley said Wednesday that U.S. inflation expectations seem to be "well-anchored" and that "slack" in labor markets is a reason behind the central bank's continuing easy monetary policy.

Inflation may be a little below target, but the U.S. doesn't have the same problem that's seen in Europe and Japan, Dudley said in a question-and-answer session with the Business Council of New York State. The developed economies in Europe and Japan have struggled with deflation.

In the United States, the job market is one reason the Fed has been relatively patient in terms of raising rates, he said, noting that there's more slack — or underemployed and underutilized workers — than suggested by just the unemployment rate.