Bill Dudley, Columnist

The Federal Reserve Is Fighting the Wrong Inflation War

The central bank’s approach would have made more sense a decade ago.

October 6, 2021 at 10:00 AM UTC

Bill Dudley is a Bloomberg Opinion columnist. A former president of the Federal Reserve Bank of New York, he is a member of Coinbase Global's advisory council.

It’ll cost you.
Photographer: Justin Sullivan/Getty Images

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In figuring out how to deal with resurgent U.S. inflation, the Federal Reserve needs to understand the nature of its adversary: Is the current economic situation similar to what it was after the 2008 financial crisis, or something new and different?

I’m concerned that the Fed is making the mistake of fighting the last war.