Former New York Fed President Dudley: The Fed's reputation as an inflation fighter is at risk.

According to a report by crypto.news, Techub News reports that former New York Fed President Bill Dudley warned that the Fed's reputation as an "inflation fighter" is at risk of eroding as inflation has exceeded the 2% target for five consecutive years. He pointed out that current policy is actually "not tight," and if it continues to appear tight enough, inflation expectations could "decouple." This comment comes as Fed Chairman Christopher Waller publicly acknowledged that interest rates might be raised again if inflation does not cool down. Dudley believes the neutral interest rate is far higher than the Fed perceives, indicating insufficient actual policy力度 (policy strength/strength). He argues that if inflation is allowed to remain above target for an extended period, the market may accept 3-5% as the new normal, and future efforts to curb inflation will come at the cost of a severe recession.