Global financial conditions have tightened markedly since the Federal Reserve lifted interest rates in December and the central bank will have to take that into account if the situation persists into March, the president of the New York Fed has said.

The words from Bill Dudley came as financial markets ratcheted back expectations of rate rises further, with traders now expecting no move at all in 2016 — in sharp contrast to Fed policymakers’ last forecasts in December.

Mr Dudley said that the recent turmoil in financial markets could alter the outlook for growth and risks to the economy, adding that if the global economy were to hit a roadblock, triggering a further surge in the dollar, “it could have significant consequences back to the US.”