"Significant progress" has been made in Europe and the US towards repairing damage done by the financial crisis, but both jurisdictions still have work to do, according to William Dudley, president of the Federal Reserve Bank of New York.

Delivering the opening remarks at a conference on transatlantic economic interdependence, Dudley said the US was facing a "tug-of-war" over fiscal policy, where brawn seemed to dominate brains. He said politicians should accept that there was too much fiscal