Ex-NY Fed Chief Dudley Says Fed Is Doing the Right Thing on Rates

The transcript discusses the 2007-2008 financial crisis, highlighting the systemic issues that arose, particularly in the nonbank financial sector. It details the Federal Reserve's extraordinary measures to stabilize the economy and the challenges faced in restoring confidence. The discussion includes the collapse of Lehman Brothers, the subsequent regulatory changes, and the ongoing debate about whether Lehman could have been saved. The transcript concludes with concerns about future economic risks, including trade policy and fiscal sustainability, emphasizing the importance of financial stability in achieving monetary policy goals.

What is your perspective on the current state of the banking system compared to the past?

What are the potential risks that could arise in the future according to your analysis?

What regulatory changes have taken place since the financial crisis?