Former New York Fed President: The current reason for rate cuts is weak; neutral interest rates may be higher than the Fed's assumptions

Former New York Federal Reserve President Bill Dudley warns that after failing to achieve the 2% inflation target for a long time, the Federal Reserve's credibility as the "inflation fighter" is in jeopardy. He believes that the neutral interest rate may be structurally higher than the Fed's current assumptions, due to factors including the investment boom driven by artificial intelligence and the rising level of U.S. government debt.
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