Fed's Dudley Warns About Downside Risks, Sees Cautious Rate Hikes

(RTTNews) - Just hours after Fed Chair Yellen talked up the U.S. economy, New York Fed President William Dudley warned that downside risks should keep the central bank from raising interest rates anytime soon.

"The low levels of energy and commodity prices may signal more persistent disinflationary pressures than I currently anticipate, while renewed tightening of financial market conditions could have a greater negative impact on the U.S. economy," Dudley said in Bridgeport, Conn.

"Given my outlook and risk assessment, I judge that a cautious and gradual approach to policy normalization is appropriate," he said.