Fed’s Dudley Cautious on Rate Hikes, Not Ruling Out Increase This Year

FOMC member William Dudley emphasized the need for caution regarding potential interest rate hikes in the U.S. on Monday. He acknowledged existing economic headwinds but indicated that a rate increase could still occur later this year if the economy demonstrates improvement. Dudley remarked that it is “premature to rule out further monetary policy tightening this year.” His comments came during a speech in Indonesia, following the announcement that U.S. GDP growth for the second quarter was just 1.2%, a figure he described as “sluggish” and significantly below forecasts.