Not At Tight Monetary Policy Yet: Former NY Fed President Dudley

Bill Dudley, Bloomberg Opinion columnist and former NY Fed President, says the Fed's problem is bigger than that of a year ago.

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[jacoboros]

Dudley's reputation aside, that bit he said about deglobalization happening right now is important, and I don't think it's talked about enough. There's a fundamental structural difference between this cycle we're entering and the previous cycles we've navigated. Interesting times.

[frederickmiles]

How is Dudley even consulted? His incompetence built the current bubble that we have (everything bubble) - he is a career criminal. This is just sad and comical.

[normanoro]

Really interesting interview. A world with long-term elevated inflationary pressures due to enduring changes in supply chain configurations, geopolitical rivalries, resource needs and possibly even labor availability will call for higher nominal interest rates. One silver lining is that this would probably be a more normal financial environment for the Fed to do monetary policy in (ie, one where the real interest rate is actually positive).

OMG it's very encouraging that Powell has the guts to speak truth to power. I'm shocked and impressed all at once. there may be hope...

[KT-zxjr]

Tight monetary policy does not have an absolute number. Instead, it has a relative level and it is very tight right now vs when the 10-year hit a 0.42 percent its over 3 percent....What's the percentage gain there? Hmmm...sounds pretty tight to

[dagsterblaster]

These folks are so not Wyoming types.... JH airport is something to see, it's lavish as all get out to accommodate this annual meeting. LOL, imagining these folks skiing off the Gondola or doing a hike in that area... These are also the types that will dictate to us about "global warming".

[corychow]

The whole world people have to focus on these central bank officers, this is really ridiculous and unfair, their power should be absolutely limited, people should be able to focus on productivity, technology, not gambling on these bureaucrats who make the things worst

[dagsterblaster]

The Fed better get ahead of inflation quick because if we are under it that means it becomes entrenched. There is literally NOTHING that suggests to me that the current rate hikes and pathetic performance of QT has done anything to slow down the inflation. The Fed had to come out Friday and assert itself for the fact that the current tax code cannot afford to long term feed higher interest rates. The Fed needs to crash this market, not slowly influence it. I think they understand that, hence the word "pain". The Fed really can't afford to wait a month then even raise by 75 bps, they should have an emergency meeting of 100 bps and raise the QT by 3 fold. The current QT has been a total failure as the lack of refi has kept virtually zero MBS from rolling off the balance sheet! As if they planners could not have figured out that higher rates would slow down refis?? Pathetic.

[DavidGatto]

Unfortunately, the US must consider other economies and political overseas considerations besides its own maximum pleasure principle. Such is the Burden of being the preeminent reserve currency- make no mistake about it- this is the battle free markets face against totalitarianism and centrally planned and controlled markets.

[williamandrews]

What about the millions of unemployed immigrants??

[AH-fmrj]

US bringing inflation to 2% will be at the cost of almost killing EU's economy. ECB cannot keep up with the FED. So FED can further bring the rate higher that puts the EU in deep recession, that way they will solve the supply chain problem by reducing EU's consumption of goods and energy.

[rushdaniel]

we should increase supply and not decrease demand, this is not a good way to do things

[bla-igbd]

Someone should investigate Dudley's personal portfolio.. I bet 100% he is short the market

[francisdelacruz]

The supply chain has normalized? Is he talking about 2022? Tsk ..That's not calling it as how the data turns out...

[kioly_ah]

they are sitting at beautiful place talking about the inflation.

[michaelswami]

Next time I recommend not having three interviewers. I missed quite a bit because of overtalking.

[AmerDemirovic]

As Friedman said, the cure for inflation is "spend less, print less". It is kind of funny to buy trillions worth of assets and then raise interest rates to curb resulting inflation.

[rushdaniel]

The girl with a big nose needs to put her coffee down

[starter]

Love those Zimbabwe dollars.
Nice opinion piece.

[Robert...Schrey]

if they could only stop indulging in fond memories of the past.