New York Fed President William Dudley recently delivered a speech, providing the key headlines, via Reuters, found below.
U.S. tax cuts to give short-term boost to economy but pose serious long-term risks.
'Strong case' to keep gradually raising rates.
Tax cuts will come at a cost, pose challenges for Fed.
Tax cuts make him 'considerably more cautious' about longer-term economic outlook.
U.S. fiscal path now unsustainable, sees risks to U.S. creditworthiness.
Significant portion of tax cuts will be saved not spent.
Tax cuts could lead to economic overheating, hurt long-term fiscal position.
Expects above-trend GDP growth, rising inflation in 2018.
Raises expected 2018 GDP growth forecast to 2.5-2.75 pct, mostly due to tax stimulus.
Expects inflation hitting 2 pct target in medium term; unemployment down below 4 pct this year.
Small, transitory inflation overshoot not a problem.
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