US Recession ‘Pretty Likely,’ Ex-New York Fed Chief Dudley Says
- If recession happens, Fed could end it by easing policy
- Doesn’t see big risk of ‘financial-instability cataclysm’
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A US economic recession is in the cards because of what the Federal Reserve must do to cool inflation, said former New York Fed President William Dudley, but it probably won’t be a severe slowdown.
“A recession is pretty likely just because of what the Fed has to do,” he said in an interview on Bloomberg Surveillance Tuesday. “But what’s different this time I think is that if we have a recession, it’s going to be a Fed-induced recession and the Fed can end the recession by subsequently easing monetary policy.”