Investing.com - New York Federal Reserve Bank President William Dudley said Sunday expectations for just one rate hike before the end of next year are too pessimistic.
"I think it is premature to rule out further monetary policy tightening this year," Dudley said in remarks prepared for delivery at a joint economic seminar hosted by the Bank Indonesia and the Federal Reserve Bank of New York in Bali.
Dudley, who votes each year as vice chair of the policymaking Federal Open Market Committee, described market expectations showing only one more 25 basis points increase though the end 2017 as "too complacent."
"If the incoming information validates my view of the outlook, then I believe that U.S. monetary policy will likely need to move at a faster pace than implied by futures prices towards a more neutral posture as the labor market tightens further and U.S. inflation rises," Dudley said.