Dudley: Post-FOMC rate drop should help economy (by Steve Goldstein)

WASHINGTON (MarketWatch) -- New York Fed President William Dudley on Friday said the drop in interest rates since the Federal Open Market Committee decision on Tuesday should provide some additional support for economic activity. "Following the release of the FOMC's statement, market interest rates generally moved lower, which should help provide some additional support for economic activity and jobs. I would note, however, that conditions remain unsettled and the equity market in particular remains very volatile," Dudley said in a speech otherwise focused on the New York economy. Similar to what the FOMC statement on Tuesday said, Dudley said he's revising down his expectations of the recovery, as not all of the first-half weakness was due to temporary factors such as rising food and energy prices and supply chain disruptions after the Japan earthquake. Dudley was one of seven voters that supported the decision to pledge to keep interest rates low through at least mid-2013.