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DUDLEY WARNS FED CREDIBILITY AT RISK Bill Dudley says the Federal Reserve risks losing credibility after years of missing its 2% inflation…

DUDLEY WARNS FED CREDIBILITY AT RISK Bill Dudley says the Federal Reserve risks losing credibility after years of missing its 2% inflation target, warning that expectations may become unanchored. He pointed to persistent inflation above target, rising long-term expectations, and strong U.S. growth despite high rates, suggesting policy may be less restrictive than assumed. Dudley added that structural forces like AI investment and high government debt may be lifting the “neutral” rate, while political pressure and leadership change add to uncertainty.
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