Bill Dudley
The Architect
Structured and legacy-driven; builds the systems and institutions that last.
Bill Dudley earns The Architect on the strength of instruments built before institutions knew they needed them. The Financial Conditions Index he co-created at Goldman Sachs, adopted by the Fed two decades later, is the signature case, a framework drawn ahead of its moment.
“Money being able to supply the capital that's needed, then people can start to rest assured that the banking system is going to stabilize and it's going to stop deteriorating. Now, it also helped that the economist was showing signs of bottoming out. So it didn't look like we're just heading down into a deep hole.”
“On a six month change basis for the core PCE deflator, which is the Fed's preferred measure of inflation is tracking 2%. So all we need is another six months of the same as Chair Paul said in his press conference. And we're basically at the 2% objective. And the labor market's doing gangbusters, frankly.”
“So, when all of us go up or down, it seems to affect the people's inflation expectations through the TIFS market five years from now, which makes no sense. Part of the problem is also the liquidity of the TIFS market is different than the liquidity of the nominal treasury market.”
“I was there in the, what's called the financial studies section, which is one of the very small places in the Fed that is not macroeconomics driven. It's microeconomics. So we worked on things like payments policy, regulatory policy, so all sorts of micro issues, not macro issues.”
Masters in Business: “Bill Dudley on Monetary Policies”
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