Dudley, who was president of the New York Fed from 2009 to 2018, said that if the risks between rising inflation and a weak labor market do strike a balance, as Fed officials say, then the Fed should want interest rates to move closer to neutral. Given that all Fed officials think rates are below 4 percent, it doesn't make sense to start a rate cut by 25 basis points. Logically, the Fed should go faster. Add to that last week's jobs report isn't particularly reassuring, as the unemployment rate has climbed 0.5 percentage points since the start of the year.