Posted 2/20/2024, 3:19:00 PM
Former Fed Official Dudley: Rates May Need to Stay High to Offset Deficits, Green Subsidies
- Former Fed official Bill Dudley suggests interest rates may not be high enough yet to restrict growth.
- He says the neutral rate could be above the Fed's 0.5% estimate due to large deficits and green investment subsidies.
- Dudley says the Fed should potentially hold rates higher for longer as a result.
- He doesn't rule out the economy still slowing enough for rate cuts.
- Investors returned from holiday in a risk-off mood, with stocks down ahead of Nvidia earnings and yields mostly lower.