Former NY Fed Pres Dudley: The FOMC isn’t doing enough to fight inflation

Former New York Fed President Bill Dudley is out with a new commentary today saying that the Fed needs to hike rates further.

"I think r* is a lot higher than the Fed recognizes — which means the central bank isn’t doing enough to fight inflation," he writes.

The makes the case that r* -- or the neutral rate -- has 'risen substantially' since he was at the FOMC in 2018 and that monetary policy isn't very restrictive.

He cites Q1 real final domestic sales at 3.1% and the Atlanta Fed Q2 tracker as reasons for concern. He also notes high stock prices and high US government spending