New York Fed president keeping eye on expectations

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Federal Reserve Bank of New York

Falling inflation expectations should reverse course if the US economy maintains its pace of growth, but should it "unexpectedly weaken", the recent drop "would become more concerning", the Federal Reserve Bank of New York president said on January 15.

William Dudley told an audience at the Economic Leadership Forum, in New Jersey, that some surveys of inflation expectations "have softened recently". In particular, he highlighted a drop in the New York Fed's survey of consumer expectations.

The

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