Bloomberg Surveillance · Friday, July 31, 2026
Former New York Fed President Bill Dudley argues that the Fed's current approach to monetary policy, particularly Chair Watsh's, is 'deeply flawed' and an abdication of responsibility. He criticizes the lack of clear communication regarding the Fed's reaction function and the resulting loss of credibility in financial markets.
“The former New Your Friend President Bill Dudley with a new op ed iitled Watch's approach to Fed policy is deeply flawed. He writes, outsourcing monetary policy to financial markets is a terrible idea.”
“It's weird when you're not explaining why three people are dissenting, yet the committee is deciding and no changing policies. It really was virtually no information about how the Fed Reserve is thinking about mandre policy, how the Fed Reserve is likely to react to incoming information in terms of how they adjust Manjar policy.”
“The silence of Watsh was really quite definitely and the financial markets basically that thumbs down. I mean the fact that the thirty year yield went up to ten year wheel went up and two year yelds dropped really was a sign that there was a loss of credibility in that from that press.”