Negative interest rates a potential policy tool: Fed's Dudley

SOMERSET, N.J. (Reuters) - Negative interest rates are a potential policy tool for the Federal Reserve to combat future U.S. economic downturns, but it is not "seriously considered" by policy-makers right now, New York Federal Reserve President William Dudley said on Friday.

Dudley was asked about negative policy rates which are being used by the European Central Bank and Swiss National Bank right now to combat deflation.

Dudley was speaking at an event sponsored by the New Jersey Bankers Association here.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)