NY Fed chief expects rate hike mid-2015

New York Federal Reserve President William Dudley says he expects the central bank to raise interest rates in the middle of 2015.

“Market expectations that lift-off will occur around mid-2015 seem reasonable to me, although that could change depending on how the economy evolves,” Dudley said in prepared remarks given at Baruch College in New York on Monday.

{mosads}Federal Reserve officials are easing off their bond-buying program, which they implemented to stimulate the economy after the 2008 collapse.

They’ve kept interest rates at zero, however, and many market-watchers are speculating over when they will raise the rates. Some warn the economy isn’t healthy enough to consider raising interest rates.

Dudley said that raising rates would be a good sign for the economy and downplayed any trouble for financial markets.

“While raising interest rates is often portrayed as a difficult task for central bankers, in fact, given the events since the onset of the financial crisis, it would be a development to be truly excited about,” he said.

“This would indicate that the U.S. economy is finally getting healthier. … That would be very good news, even if it were to cause a bump or two in financial markets.”