Dudley calls for new plan to avoid market overreaction when Fed heads for the exit

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William Dudley sounded a cautious note over the Federal Reserve's quantitative easing (QE) yesterday, insisting the asset purchases could go either "up or down" and calling for the Federal Open Market Committee (FOMC) to reconsider its exit plan.

Dudley, the president of the Federal Reserve Bank of New York, said the outlook for the US labour market remains "uncertain", and he would need more evidence of a "substantial improvement" before reducing the pace of asset purchases.

"Over the coming mo

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