Former New York Fed President Dudley: The Fed’s Differences Are Not That Significant

According to a report by Jinse Finance, former New York Fed President Dudley wrote that the internal divisions within the Federal Reserve have been greatly exaggerated. He believes that last week was an exception, and the actions of the two governors did not undermine Chairman Powell’s position. Dudley pointed out that Waller’s call for the Fed to cut interest rates was motivated by his intention to succeed Powell as chairman, while Bowman acted out of her supervisory responsibilities as the Fed’s vice chair. Dudley candidly admitted that although he has long been critical of the Fed—including flaws in its 2020 monetary policy framework and its failure to properly weigh the costs and benefits of quantitative easing—he believes that the attacks on Powell’s potential successors have gone too far.