Fed facilities make exit strategy more complex -Dudley

NASHVILLE, Tenn, April 18 (Reuters) - The Federal Reserve's numerous emergency lending programs make the process of eventually withdrawing stimulus more complex, New York Fed President William Dudley said on Saturday.

"As we have lots of facilities, it makes the exit problem more complex," Dudley said in response to audience questions after speaking on a panel at Vanderbilt University in Nashville. The Federal Reserve, he said, has a variety of exit strategy options.

While many of the facilities are only legally allowed to stay in place while circumstances are deemed "unusual and exigent" under the Federal Reserve Act, it will be a "difficult decision" to determine when this is no longer the case, he said.

Certain longer-term assets may be more difficult to sell or offset, he said.

In response to a question from former Federal Reserve Chairman Paul Volcker about the policy implications of excess reserves, Dudley said: "We think we can manage monetary policy with excess reserves in the banking system." (Reporting by Kristina Cooke and Ros Krasny; Editing by Leslie Adler)