Ex-Fed's Dudley: Wall Street should stop blaming the central bank every time stocks drop

William Dudley, former New York Fed president, has a message for Wall Street: Stop blaming the central bank when the stock market declines. Dudley, who retired in June 2018, said Thursday on CNBC that the Federal Reserve's actions have become a"convenient whipping boy."

The runoff is expected to end later this year, with the balance sheet at around $3.7 trillion. Reducing the balance sheet, like hiking interest rates, acts as a tightening measure on the economy. "It was a convenient whipping boy; the Fed's seeming inflexibility in the space of all these market developments for a while was a convenient whipping boy. The markets occasionally go down for a whole host of reasons," Dudley said.

The Fed has always been data dependent, said Dudley, who argued that five things happened to change monetary policymakers' minds between October and January."Number one, financial conditions tightened in the fourth quarter, quite significantly. Number two, despite strong payroll growth, the unemployment rate stopped declining. Number three, the tightness in the labor market didn't lead to much wage acceleration. And number four, inflation was a little bit on the soft side.

I blame the Fed for keeping it all propped up..:

I always block fake news. YouAreBlocked

Agreed. Come on it's this

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Fed Chair Powell says balance sheet decision market is waiting for is 'close' to happeningDetermining the size of the bond portfolio has been a key concern for investors nervous about how much further the Fed will tighten. And begin QE 5 🤣🤣🤣
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