Key Words: Ex-New York Fed head sees risk of four ‘fatal’ flaws in central bank’s thinking on pause

Daily Trade

A former top official for the Federal Reserve is warning about all the ways in which the central bank’s pause on interest-rate hikes could go wrong.Bill Dudley, who led the Federal Reserve Bank of New York between 2009-2018, wrote in a Bloomberg column that he sees “four potentially fatal flaws” in policymakers’ thinking and that “they could be making a big mistake” by keeping rates on hold.His warning came earlier on Wednesday, just hours before the policy-making Federal Open Market Committee voted unanimously to keep its main interest-rate target at a 22-year high of 5.25%-5.5%. One of the reasons for the Fed’s pause…

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