Dudley cautions against Fed reaction to Mideast

It is important for the U.S. Federal Reserve 'not to overreact' to developments in the Middle East, as it is unclear how the situation will play out, New York Federal Reserve Bank President William Dudley said Monday.

"It is premature to make strong judgments today," Dudley said.

If oil prices rose on a sustained basis, he said, and fed through into broader prices, "that would be something that the Fed takes seriously," he said.