Dow Jones S&P 500 dips ahead of Fed meeting, bitcoin price drops below $21,000

William Dudley, the former president of the Federal Reserve Bank of New York, said on Tuesday that he believes the US central bank will go for a massive interest rate hike on Wednesday as it tries to raise monetary policy quickly to deal with rising inflation.

William Dudley, speaking at the CFO Network Summit in the Wall Street Journal, said the Fed is likely to put in three-quarters of a rate hike at the end of the FOMC meeting. Mr. Dudley, who was formerly Chief Economist at Goldman Sachsled the Federal Reserve Bank of New York from 2009 Until he retired in 2018.

Mr. Dudley continues to be an influential voice on central bank issues and in recent comments Criticize the Federal Reserve Being too slow to respond to rising inflation forced central bankers to shift quickly in price expectations. This week, in the aftermath Sharp inflation at the consumer level Data released on Friday, moved markets from expecting a half percentage point increase from the Federal Open Market Committee meeting For bigger size move.

“My sense is that the Fed decided to do 75 basis points instead of 50 basis points because of the data we’ve had over the past week or so showing higher inflation and maybe some disturbing news. on inflation expectationsMr. Dudley said.

Asked if a more serious one percentage point increase would be a good idea, Mr Dudley said, “You can certainly make that argument because if you decide that how quickly you get there is just as important as the level you’re going to get to, why not get there faster? ?” The current target rate range for the federal funds is now set between 0.75% and 1%.

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