Former New York Fed President Discusses Interest Rate Adjustments

According to Odaily, William Dudley, who served as the President of the Federal Reserve Bank of New York from 2009 to 2018, has expressed his views on the current economic situation. Dudley stated that if the risks between rising inflation and a weakening labor market are indeed balanced, as Federal Reserve officials suggest, then the Federal Reserve should aim for interest rates closer to a neutral level. He emphasized that given all Federal Reserve officials believe rates below 4% are insufficient, it would be illogical to start cutting rates by 25 basis points. Instead, Dudley argued that the Federal Reserve should move more swiftly in its actions. Additionally, he noted that last week's employment report was not particularly reassuring, as the unemployment rate has increased by 0.5 percentage points since the beginning of the year.