One of the US Federal Reserve’s most senior officials talked down the health of the world’s largest economy yesterday, saying it does not have enough momentum to justify slowing down the central bank’s $85bn monthly asset purchases.
“The economy has not picked up forward momentum and a 2 per cent growth rate – even if sustained – might not be sufficient to generate further improvement in labour market conditions,” said William Dudley, president of the New York Fed, and vice-chair of the rate-setting Federal Open Market Committee.
Mr Dudley went on to fuel the uncertainty about the Fed’s intentions, reiterating the central bank’s June guidance of a possible “taper” later this year.