U.S. trade, immigration policies could hit economy: Fed’s Dudley

(Reuters) – U.S. trade and immigration policies could evolve to hurt the economy’s potential, and the Federal Reserve could have to adjust interest rates through 2020 to contend with the government’s “unsustainable” deficit, one of the most influential Fed officials said on his last day on the job Friday. 

“I am a little concerned that trade policy could evolve in a way that leads to higher trade barriers, and immigration policy could evolve in a way that leads to much less immigration in the U.S. and therefore less productive capacity for the economy,” New York Fed President William Dudley told reporters.

Interest rates “will probably have to climb a little bit above neutral” because U.S. unemployment, at 3.8 percent, is so low, he added. “The move will be eventually to a slightly tight monetary policy.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.