Ex-New York Fed head sees risk of four ‘fatal’ flaws in central bank’s thinking on pause

Just hours ahead of a widely anticipated pause on interest rates by the Federal Reserve on Wednesday, a former top official for the central bank offered a warning about the risks of taking no action on interest rates.Bill Dudley, who led the Federal Reserve Bank of New York between 2009-2018, wrote in a Bloomberg column that he sees “four potentially fatal flaws” in policymakers’ thinking and that “they could be making a big mistake” by keeping rates on hold.Traders see an overwhelmingly likelihood that the policy-making Federal Open Market Committee will keep its main interest-rate target at a 22-year high of between…