Fed Inaction May Jeopardize Credibility: Dudley

The Federal Reserve is expected to hike interest rates by 25 basis points at its meeting this week, with a 90% chance according to CME's FedWatch tool. Former New York Fed President William Dudley warned that inaction could damage credibility, while Bank of America analysts predict additional rate hikes in October and December unless incoming data weakens or Fed communication turns dovish.