Slack in US labour market greater than it might seem, Fed's Dudley says
A top US central bank official reportedly pointed to "well anchored" inflation expectations and remaining "slack" in the jobs market as two reasons why monetary policy was still easy.
In remarks to the Business Council of New York, regional Fed president William Dudley said the US did not have the same low inflation problem that Europe and Japan did, CNBC reported.
Dudley also indicated there was greater unused capacity in the country's labour market than the rate of unemployment alone might suggest.
"The best thing that could happen for the US economy was to grow at a moderate rate for the next five to 10 years and the unemployment rate to stay around 5% or lower," Dudley said.
Indeed, that was the Fed's goal, he added.
"I think we're at a point where the economic expansion has plenty of room to run."
As of 1659 BST the yield on the benchmark 10-year US Treasury note was up by three basis points to 1.79%.