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

MEXICO CITY, Oct 15 (Reuters) - The U.S. Federal Reserve's actions are holding down the U.S. government's net interest expense but that should not be viewed as indefinite, New York Fed President William Dudley told a panel in Mexico City on Tuesday.

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

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