January 27, 2023

Ex-New York Fed Chief Admits ‘Fed-Induced Recession’ Is ‘Pretty Likely’ in 2023

Former central financial institution chief explains how the Fed will cause a recession to fight inflation that was also ultimately caused by the Given.

The former head of the New York Federal Reserve William Dudley warned that a recession can be “ pretty likely” ahead in 2023 and that it will be caused by the Federal Hold itself.

“ A recession can be quite likely just because of the actual Fed has to do, ” Dudley informed Bloomberg News  on Tuesday.

Dudley went on to admit that the upcoming economic downturn will be caused by the Given raising interest rates in a bet to cool off high pumpiing.

“ But what’s different this time I believe is that if we have a recession, it’s going to be a Fed-induced economic downturn and the Fed can end the recession by consequently easing monetary policy, ” he said.

In other words, the only way to end the particular recession is to print more money — the exact mechanism which usually brought about the historically higher inflation in the first place.

Dudley even explained the Fed is raising prices to raise the unemployment rate and therefore deliberately “ slow down the economy. ”

But because it is the Fed that’s driving the particular recession, “ I do not think that there’s a big risk of a financial-instability cataclysm that forces the economy into a heavy recession, ” Dudley stated.

Notably, the particular historic 40-year-high inflation had been driven by the Federal Reserve’s artificial suppression of interest rates since 2008 and publishing of about $5 trillion during the COVID crisis.

In sum, the Fed is about to cause a economic downturn by purposely slowing down the economy to fight the high inflation it also created.


After claiming inflation has been “ transitory” for over annually, the Fed finally began raising interest rates in 2022, where it’s now at 4. 5%.

As economist Peter Schiff has noted, contrary to the most popular belief among mainstream financial circles, a slowing economic climate won’t ease inflation, yet will accelerate it, mainly because as Dudley just admitted, the Fed’s only alternative is to return to low interest rates plus printing more money.

“ The Fed won’t succeed in killing inflation. But it will kill the economy. And that’s because it’s a bubble. The entire economy is based on synthetically low interest rates, ” Schiff said in September 2022.

“ There is no way to change interest rates after more than a decade of abnormally low interest rates and not allow everything come toppling lower, ” he added.

Thus, the Fed’s ultimate strategy to fight inflation is with more inflation, which will inevitably fail and force the Fed to introduce its Central Bank Digital Currency system.

The Hegelian Dialectic of Problem-Reaction-Solution at play once more.

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