Fed holding down gov't net interest expense temprorary: Dudley

Reuters

MEXICO CITY, Oct 15 (Reuters) - The U.S. Federal Reserve'sactions are holding down the U.S. government's net interestexpense but that should not be viewed as indefinite, New YorkFed President William Dudley told a panel in Mexico City onTuesday.

"People should view that as temporary rather thanpermanent," he said. He added the Fed was missing more on theemployment side than the inflation side of its mandate.

"Rising debt service cost is likely to be quite large incoming years because the size of the aggregate debt hasincreased substantially and interest rates are unusually low,"he added.

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