ICYMI: Former NY Fed President Dudley says FOMC needs to cut next week, September too late

William Dudley served as president of the Federal Reserve Bank of New York from 2009 to 2018.

Greg had the headlines from him overnight:

• Fed’s Dudley: It may be too late to fend off a recession

Dudley’s long held previous view was for a rate cut later this year, but:

• “The facts have changed, so I’ve changed my mind. The Fed should cut, preferably at next week’s policy-making meeting,”

The Fed meet on July 30 and 31.

Duds cites:

• the Fed’s efforts to cool the economy are having a visible effect
• signs of slowing growth are appearing in the the labor market
• three-month average unemployment rate rising 0.43% from its low point in the prior 12 months to a rate that could spark a recession, the rate is now very close to “the 0.5% threshold that, as identified by the Sahm Rule, has invariably signaled a US recession”
• inflation continues to slow, not “far above the central bank’s 2% objective”

Info comes via news wire reports.

This article was written by Eamonn Sheridan at www.forexlive.com.