Former Fed Bank of NY Dudley Warns US Fiscal Position Is on ‘Unsustainable Trajectory’

The US fiscal situation is on a dangerous path, warns ex-Fed official Bill Dudley. Soaring debt costs and increasing healthcare and social security expenses are exacerbating the issue. Political dysfunction hampers resolution efforts. Recent bond market troubles and a potential Moody’s downgrade reflect growing concerns. Despite market expectations, Dudley suggests the Fed may not rapidly cut rates, focusing instead on labor market adjustments to control inflation.