In a recent Bloomberg article, BWC Chair Bill Dudley explains why Kevin Warsh, the prospective chair of the US Federal Reserve should be careful about lowering short-term interest rates. Warsh’s recent reasoning for doing so has been met with skepticism, and Dudley highlights four main flaws and emphasizes that his approach reinforces market concerns about the Fed’s independence. In his view, fueling these concerns will make it more difficult to achieve the central bank’s 2% inflation target.

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All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.