A US rate hike in September is still 'very much in play'

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While Greece is currently rattling financial markets, there are some policymakers who are looking through the current bout of volatility.

One of them is New York Federal Reserve president William Dudley who, in an interview in the Financial Times over the weekend, suggests that a September interest rate increase in the US is “very much in play”, according to a report from Reuters.

“It would not shock me if we decided to lift off in September, or it wouldn’t shock me if the data were a little softer and it caused us to wait,” Dudley said, citing recent improvements in US wages, income and household spending data as having improved his outlook for the US economy.

“If we hit 2.5% growth in the second quarter and it looks like the third quarter is shaping up for something similar, then I think you are on a firm enough track that you would imagine you would have made sufficient progress” in the Fed’s inflation and employment goals to raise rates “certainly by the end of the year,” he said.

On Greece — the topic on everyone’s mind right now — Dudley suggested the escalating debt crisis remains a “huge wild card”.

And it looks like it’ll get even wilder in the days ahead.

There’s more here.

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