Bill Dudley, Columnist

Wishful Thinking Won’t Help the Fed Beat Inflation

Market speculation about a “pivot” is overdone and counterproductive.

August 1, 2022 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.

There’s a time and place to pivot.
Photo: Hulton Archive/Getty Images

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Investors have lately become strangely optimistic that the Federal Reserve won’t have to tighten monetary policy much further, bidding up stocks and bonds amid hopes that the Federal Reserve will soon get inflation under control.

This wishful thinking is both unfounded and counterproductive.