Bill Dudley, Columnist

The Federal Reserve’s Pause Could Go Terribly Wrong

There are four potentially fatal flaws in the way policymakers are thinking about monetary policy.

November 1, 2023 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.

The 70s could happen again. — The 70s could happen again.
Photographer: Keystone/Hulton Archive/Getty Images

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The US Federal Reserve thinks it can take a break. As Fed officials see it, they need only sit back and wait while the monetary tightening they’ve already done gradually takes hold, slowing the economy and pushing inflation back down to the central bank’s 2% target.

They could be making a big mistake.