“I’ve long been in the ‘higher for longer’ camp, insisting that the US Federal Reserve must hold short-term interest rates at the current level or higher to get inflation under control. The facts have changed, so I’ve changed my mind. The Fed should cut, preferably at next week’s policy-making meeting,” writes former NY Fed Chair Bill Dudley in Bloomberg.
- “For years, the persistent strength of the US economy suggested that the Fed wasn’t doing enough to slow things down…Now, the Fed’s efforts to cool the economy are having a visible effect.”
- “Granted, wealthy households are still consuming…But the rest have generally depleted what they managed to save from the government’s huge fiscal transfers, and they’re feeling the impact of higher rates on their credit cards and auto loans.”
