Bill Dudley Says Fed Should 'Ditch' Interest Rate Target

The video discusses the role of the federal funds rate and its diminishing importance due to abundant reserves in the banking system. It explores the Fed's technical adjustments to interest rates and the impact of leverage ratios on banks. The discussion covers the Fed's asset purchases, market expectations, and the communication strategy of the Federal Reserve. It also highlights the decision-making process within the Fed and the influence of key figures like Powell, Clarida, and Williams.

What factors contribute to the current environment of excess reserves in the banking system?

How does the Fed's asset purchase strategy affect monetary policy expectations?

What lessons can be learned from the Fed's previous asset purchase reductions?