Ex-N.Y. Fed Chief Dudley Says Economic Outlook Is Deteriorating

The U.S. economy faces “slow going” with no additional fiscal support likely for several months, said former New York Fed President William Dudley.

“The outlook for the economy is deteriorating,” Dudley said Wednesday in an interview on Bloomberg Television with Joe Weisenthal, Romaine Bostic and Caroline Hyde. “The most likely scenario is that we continue to have a recovery with some downside risk of a double dip” recession amid worsening levels of coronavirus infections.

Dudley, a Bloomberg Opinion columnist, said that if Democrat Joe Biden wins the presidency as polls suggest, more fiscal stimulus may not arrive until after the inauguration in January, while the Fed’s ability to provide more monetary policy stimulus is limited.

“The Federal Reserve can clearly do more,” Dudley said. “The real question is how much of an impact would it actually have on the economy and we figure at this point not very much, because the Fed’s already accomplished most of what monetary policy can do to support the economy.”