Former President of the Federal Reserve Bank of New York

Bloomberg – Former President of the Federal Reserve Bank of New York, William DudleyHe indicated that A recession is expected in the US economy due to the Fed’s tightening campaign to curb inflation, although it is thought so There will be no serious slowdown.

“A recession is more likely because of what the Fed needs to do,” he said in an interview with Bloomberg Surveillance on Tuesday. “However, the difference this time around is that I think in a recession, It will be a recession caused by the Federal ReserveAnd it will be able to end the recession by subsequently easing its monetary policy.”

Last year, the US central bank Interest rates have gone up dramatically To contain the highest inflation rate in the past forty years, and stated that it will continue in this line until it achieves its goal.

says Dudley, senior advisor at Bloomberg Economics, Federal Reserve He would need to raise interest rates just enough to slow economic activity so that the labor market sees a higher unemployment rate and that wage inflation stabilizes at a level consistent with the 2% inflation target.

However, since the slowdown is being driven by the central bank, “I don’t see a high risk of a catastrophic financial instability that pushes the economy into a severe recession,” he said.

With assistance from Tom Kane, Jonathan Ferro, and Lisa Abramović.