Bill Dudley, Columnist

The Fed Might Be More Dovish Than Powell Thinks

If monetary policy isn’t actually holding back the economy, further interest-rate cuts could be an inflationary mistake.

October 22, 2025 at 10:30 AM UTC

By Bill Dudley

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.

Gone too far?
Photographer: Michael Nagle/Bloomberg

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If the US Federal Reserve cuts interest rates next week, it’ll be acting in part on a crucial assumption: that monetary policy is currently restrictive, holding the economy back.

This belief could prove to be dangerous.