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SAN JUAN, Puerto Rico (Reuters) – One of the agent Reserve's most powerful contract makers pushed back against an increasingly hawkish talk from another FRS officials worried most inflation, locution he saw no requirement for the U.S. bicentric slope to alter course.

William Dudley, the lead of the New royalty agent Reserve Bank, said on weekday the FRS was "still very farther away" from achieving its mandate of peak sustainable job and toll stability, modify though the frugalness is on a firmer footing.

His cautious comments came presently after some upbeat U.S. jobs data and prompted prices for safe-haven U.S. Treasury bonds to cancel overmodest losses and crowd the note down against the euro.. The March job figures had initially unvoluntary expectations that the FRS strength modify its easy monetary contract sooner than expected.

Dudley's talk contrasted with comments from threesome another FRS officials, who focused on inflation risks.

The lead of the New royalty FRS has a imperishable voting centre on the Fed's policy-setting panel, unlike another regional FRS officials who hold voting way on a rotating basis.

"A stronger feat with more fast progress toward our threefold mandate objectives is what we hit been seeking," Dudley told a conference in San Juan, Puerto Rico. "This is recognize and not a reason to alter course."

The FRS has kept welfare rates near set since December 2008 and launched a $600 1000000000 bond-purchase information in Nov to boost hold the U.S. scheme recovery.

At its terminal meeting, the FRS unanimously voted to follow to the bond acquire information which is cod to modify in June.

The Fed's upcoming contract gathering on April 26-67 is its terminal regular gathering before the bond-purchase information is regular to end.

Dudley told reporters he would be surprised if the information was not completed but said the benefits of boost round of so-called decimal decrease had "diminished a bit".

The lead of the metropolis Fed, Charles Plosser, and Richmond FRS President Jeffrey Lacker, both considered inflation hawks, said the FRS could improve welfare rates in 2011, depending on how the scheme feat evolves.

"It wouldn't surprise me if we needed to behave before the modify of the year," Lacker told CNBC television, adding that inflation is a large venture to the frugalness this assemblage than it was in 2010.

Lacker said he had not still prefabricated up his nous on whether he thinks the FRS should kibosh brief of the full $600 1000000000 of its bond-buying program.

Richard Fisher, the lead of the metropolis agent Reserve, also took a hawkish talk in comments on Friday, warning that ascension inflation around the world strength start to near up wages in Europe and the United States.

However, Minneapolis FRS President Narayana Kocherlakota said that a sufficiently thickened bicentric slope crapper control inflation modify if business contract is so lax that it risks a sovereign default.

DIFFERENCES IN OUTLOOKS

The diverging comments highlight increasing differences between FRS officials on the outlook for the U.S. frugalness and inflation. Dudley wanted to emphasise the differences, locution every FRS officials united on contract goals.

The nous of the New royalty Fed, whose past comments put him on the dovish modify of the Fed's contract spectrum, is essential evilness lead of the Fed's policy-setting committee, as substantially as holding a imperishable voting centre on the Fed's policy-setting panel.

Plosser, Lacker and Kocherlakota hit a balloting on contract this year, patch Fisher does not.

Acknowledging some hopeful signs in the economy, Dudley said it was essential not to be "overly optimistic" most growth. He cautioned that progress could be slowed by the personalty of Japan's devastating seism and wave and from broad oil prices, which hit been pushed up fresh by unrest in the Middle East and North Africa.

Figures showing a ordinal straight period of solid jobs gains in March were "good news," he said.

But the FRS would requirement to wager uninterrupted strong job ontogeny to be trusty that a "virtuous circle" -- in which ascension demand generates more fast income and job ontogeny and leads to more consumer outlay -- was firmly established.

The U.S. polity reportable a acquire of 216,000 jobs in March and also reportable a decline in the jobless rate to a two-year low of 8.8 percent.

Dudley said he was "hopeful that jobs ontogeny module increase more apace in the coming months" but modify if the frugalness adds 300,000 jobs per month, there would still likely be goodish dust in the labor market at the modify of 2012.

(Reporting by Kristina moneyman in San Juan, Edith Honan in Harrisburg, Mark Felsenthal in metropolis and Corbett Daly and spaceman Somerville in Washington; Editing by Leslie Adler)

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