Dudley's warning is quite serious. If the Federal Reserve's credibility really collapses, what kind of chaos would the market descend into?

ME News, May 27 (UTC+8). On May 26, former New York Fed Chair Dudley warned that, given the long failure to achieve the 2% inflation target, the Federal Reserve’s credibility as an “inflation fighter” faces the danger of being lost. “We have been above the Federal Reserve’s inflation target for more than five consecutive years,” Dudley said. “And there is a risk that inflation expectations could eventually become unanchored.” His remarks underscore the challenges facing new Fed Chair W... as he takes over. As W... took charge of the Fed, the Consumer Price Index (CPI) recorded its largest single-month increase since 2023, and previously, Trump had launched sustained and fierce attacks on Powell for not easing monetary policy. Dudley believes that W…’s appointment and Trump’s pressure to cut interest rates have further intensified the Fed’s credibility challenges. (Source: BlockBe