Federal Reserve Bank of New York President William C. Dudley said the international economy is “gradually improving” in a trend that benefits U.S. growth.
“Things aren’t perfect but I think that things are definitely improving and that will be helpful for the U.S. outlook,” Dudley said today in response to audience questions after a speech in New York. “If the rest of the world gets healthier” then demand will rise for U.S. goods and services.
The U.S. economy stalled last quarter because of what theFederal Open Market Committee this week called “transitory factors,” with gross domestic product shrinking at an annual rate of 0.1 percent. The policy-setting FOMC said in a statement it will continue buying securities at a pace of $85 billion a month to boost economic growth and help create jobs.
Hiring in the U.S. rose last month after accelerating more than previously estimated at the end of 2012, evidence the labor market was making progress even as lawmakers quarreled over the federal budget.