SAN JUAN, June 24 The U.S. unemployment rate can
fall even further before the Federal Reserve raises interest
rates, William Dudley, president of the New York Federal Reserve
Bank, told a Puerto Rico accounting group on Tuesday.
"We think we can get the unemployment rate considerably
lower and still not have an inflation problem. We also don't
have inflation at a level consistent with price stability," said
Dudley. "The market expectations are that the Federal Reserve
will start to raise short-term interest rates around the middle
of 2015 - that sounds to me like a reasonable forecast. But, you
know, forecasts often go astray."
In May, the U.S. jobless rate was 6.3 percent, the lowest
since the end of 2008 and unchanged from April, according to the
(Reporting by Reuters in San Juan; Writing by Lisa Lambert in
Washington; Editing by James Dalgleish)