Bill Dudley, former president of the Federal Reserve Bank of New York, criticized the Federal Reserve’s 25-basis-point rate hike on September 17 as insufficient to combat persistent inflation. The Federal Open Market Committee raised the federal funds rate to a range between 3.75% and 4.00%. Dudley anticipates two additional 25-basis-point increases by year-end, noting that inflation isn’t declining rapidly enough to meet the Fed’s 2% target. This restrictive monetary policy increases borrowing costs for businesses and households, while stablecoin issuers like Circle and Tether benefit from higher yields on their reserves.
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