Tariffs Put Fed in a Bind on Inflation, Growth: Bill Dudley

Bill Dudley, former New York Fed President and Bloomberg Opinion columnist, says tariffs being bad for growth and inflation puts the Federal Reserve in a bind, with the central bank on hold waiting for more information.

Higher tariffs will affect both inflation and growth, leading to price increases, reduced consumer spending, and delayed hiring and investment. The Federal Reserve may not be able to disregard tariff-related price increases, which could drive up inflation expectations and delay the achievement of its 2% inflation target. The combination of slower growth, higher prices, and greater inflation expectations will likely negatively impact markets, with lower earnings and stock prices, and reduced bond yields His opinions are his own.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET
WATCH HERE: bit.ly/3vTiACF

Follow us on X: twitter.com/BloombergRadio

Subscribe to our Podcasts:

Bloomberg Daybreak: bit.ly/3DWYoAN
Bloomberg Surveillance: bit.ly/3OPtReI
Bloomberg Intelligence: bit.ly/3YrBfOi
Balance of Power: bit.ly/3OO8eLC
Bloomberg Businessweek: bit.ly/3IPl60i

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:
Apple CarPlay: apple.co/486mghI
Android Auto: bit.ly/49benZy

Visit our YouTube channels:
Bloomberg Podcasts: youtube.com/bloombergpodcasts
Bloomberg Television:    / @markets  
Bloomberg Originals: youtube.com/bloomberg
Quicktake:    / @bloombergquicktake