Former New York Fed President William Dudley has expressed concerns over the Federal Reserve's credibility as an effective inflation fighter, citing its prolonged inability to meet the 2% inflation target. Dudley noted that inflation has exceeded the Fed's target for over five years, raising the risk of unanchored inflation expectations. His comments come as new Fed Chair Walsh takes office amid the largest monthly increase in the Consumer Price Index since 2023. The situation is further complicated by pressure from Trump for rate cuts, which Dudley believes could exacerbate the Fed's credibility issues.