William Dudley, who served as president of the Federal Reserve Bank of New York from 2009 to 2018, said that if the risks of rising inflation and a weakening labor market truly balance out, as Fed officials say, then the Fed should aim for interest rates closer to neutral. Given that all Fed officials believe interest rates are below 4%, it makes no sense to begin cutting rates in 25 basis point increments. Logically, the Fed should move faster. Additionally, last week’s jobs report was not particularly reassuring, as the unemployment rate has climbed 0.5 percentage points since the beginning of the year.