Latest news with #BillDudley
Yahoo
04-08-2025
- Business
- Yahoo
Bill Dudley on Fed Disagreement, BLS Data Quality
Bill Dudley, former New York Fed President and Bloomberg Opinion columnist, says the degree of disagreement at the Federal Reserve is "dramatically overstated," as he discusses pressure on the Fed from the Trump administration. His opinions are his own. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
04-08-2025
- Business
- Bloomberg
Bloomberg Surveillance TV: August 4th, 2025
- Ed Yardeni, Chief Investment Strategist and founder at Yardeni Research - Michelle Meyer, Chief Economist at the Mastercard Economics Institute - Lynn Martin, President at NYSE - Bill Dudley, Bloomberg Opinion columnist and former NY Fed President Ed Yardeni, Chief Investment Strategist and founder at Yardeni Research, discusses the outlook for the equity rally after President Trump's tariff deadline and his firing of the head of the Bureau of Labor Statistics. Michelle Meyer, Chief Economist at the Mastercard Economics Institute, talks about the outlook for the US consumer, consumer spending, and the US economy. Lynn Martin, President at NYSE, discusses the outlook for IPOs, regulation, and crypto products. Bill Dudley, Bloomberg Opinion columnist and former NY Fed President, discusses his Opinion column on how the Fed is currently under siege and why he believes it will come out OK.
Bloomberg
04-08-2025
- Business
- Bloomberg
Bill Dudley on Fed Disagreement, BLS Data Quality
Bill Dudley, former New York Fed President and Bloomberg Opinion columnist, says the degree of disagreement at the Federal Reserve is 'dramatically overstated,' as he discusses pressure on the Fed from the Trump administration. His opinions are his own. (Source: Bloomberg)
Mint
09-07-2025
- Business
- Mint
Dear Trump… Nobody can glower American interest rates down
Next Story Bill Dudley Instead of ranting about the US Federal Reserve's monetary policy or making unrealistic debt issuance plans, the administration should exercise pragmatic options. Begin with fiscal prudence, a big miss in America's One Big Beautiful Bill. The US One Big Beautiful Bill makes it even harder to cheapen credit. Gift this article America's leaders have latched onto the idea that they can address some big problems—most notably a gaping budget deficit—by forcing interest rates downward. If only it were that easy. America's leaders have latched onto the idea that they can address some big problems—most notably a gaping budget deficit—by forcing interest rates downward. If only it were that easy. President Donald Trump keeps turning up the pressure on the Federal Reserve to lower short-term rates, publicly expressing his dissatisfaction with Fed Chair Jerome Powell. Treasury Secretary Scott Bessent wants to reduce longer-term rates by issuing less long-term US debt. Financial regulators are tweaking capital requirements, encouraging large US banks to buy and hold more Treasury securities, which would push prices up and yields down. If these efforts work as intended, they could deliver significant benefits. Say, if interest rates were a mere percentage point lower than current projections, the US government could save about $3.5 trillion in debt-service costs over 10 years—not far from what the One Big Beautiful Bill Act is expected to add to the federal budget deficit over the same period. Unfortunately, these efforts aren't likely to succeed and could even have the opposite of the desired effect. Consider the Fed. Trump's attacks, along with his stated aim of installing a chair who favours lower rates, threaten to increase expectations of future inflation and hence drive up longer-term bond yields. Any inkling that the Fed might cave to the president's demands would only make things worse. Hence, to offset the Trump factor and maintain the market's confidence, the Fed will likely have to err on the side of caution, holding short-term rates higher than it otherwise would. Bessent's plan for Treasury issuance might have some effect. If the same number of investors are bidding for a smaller supply of longer-term Treasuries, yields should fall. But the move will be marginal at best. Long-term yields depend far more on the anticipated path of short-term rates than on the composition of Treasury issuance. Also, departing from a decades-long policy of 'regular and predictable' issuance, might generate uncertainty that would undercut any benefit. Worse, the Treasury must still borrow enough to finance a vast budget deficit. So it'll have to issue more short-term debt, making the government's finances more sensitive to future shifts in short-term rates. At the extreme, it could lead to fiscal dominance, in which the government's fiscal predicament would severely impair the Fed's ability to manage the economy. Easing capital requirements isn't much better. At issue is the supplementary leverage ratio, which limits banks' capacity to hold Treasury securities because it treats all assets equally, regardless of risk. It's designed as a backstop, to ensure banks have enough loss-absorbing equity to survive an economic downturn or financial crisis. Loosening it won't be sufficient to drive a big decline in longer-term yields. Banks' appetite for such Treasuries will be limited, because they don't want too much exposure to interest-rate risk. Also Read: Trump's presidency has only seen federal spending rise so far If officials really want to get interest rates down, they have superior options. First, control government finances. The One Big Beautiful Bill is a fiscal disaster. It's likely to add over $3 trillion to the federal deficit over the next decade, entailing greater Treasury debt issuance and ever-higher debt service costs. Some evidence of prudence would reassure investors. Second, provide greater clarity and certainty on trade policy. Trump's tariff wars have reduced foreign investors' appetite for Treasury debt. The dollar has fallen sharply, even though higher tariffs should lead to a stronger currency. Third, stop threatening the Fed's independence. A penchant for lower interest rates shouldn't be the primary qualification for the next Fed chair. Fourth, abandon any 'Mar-a-Lago Accord' that would force foreign governments to swap Treasury debt holdings for long-dated, low-yielding obligations. Fifth, make the Treasury market more resilient. More centrally cleared trading would make it less susceptible to dysfunction like the March 2020 'dash for cash." Opening the Fed's financing facility to all Treasury holders, not just banks and primary dealers, would encourage a greater variety of investors to hold more securities. So would expanding the Treasury's debt buyback programme, designed to increase liquidity in off-the-run securities. The Trump administration is unlikely to follow the most important parts of this advice. But the math is undeniable. On the present course, a decade from now, deficit-driven debt-service costs, Social Security and Medicare will each be one percentage point of GDP larger, according to the Congressional Budget Office. Merely trying to bully interest rates down can't be a meaningful part of the solution. ©Bloomberg The author is a Bloomberg Opinion columnist. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Bloomberg
07-07-2025
- Business
- Bloomberg
Equities Fall Amid Trump's Tariff Salvo
Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Winnie Cisar Creditsights, Bill Dudley New York Federal Reserve Former President, Rob Owens Piper Sandler, Michelle Meyer Mastercard, Mo Haghbin ProShares, Paul Christopher Wells Fargo Investment Institute, Alan Gerard Balanced Weather, Randy Schwimmer Churchill Asset MGMT Vice Chairman, and Gautam Mukunda, Author 'Indispensable: When Leaders Really Matter' and Picking Presidents' (Source: Bloomberg)
