Fed has tools and will to eventually exit : Dudley

The Federal Reserve has the tools and the will to eventually exit from its easy monetary policy without causing runaway inflation, New York Fed President William Dudley said on Monday.

Money banking textbooks written before 2008 are now obsolete, as the Fed now has the ability to pay interest on excess reserves, he said in response to an audience question.

(Reporting by Kristina Cooke)