It’s the job of the Federal Reserve Bank of New York to regulate powerful Wall Street banks. It’s not the only regulator, of course, yet it’s a crucial one. But has the New York Fed become too deferential to the financial institutions it watches over, too cozy? This question moved to the foreground after the public radio program This American Life with news organization ProPublica obtained audio recordings made secretly inside the New York Fed. The recordings were made by a then–New York Fed employee who would later sue for wrongful dismissal. William Dudley, president and CEO of the Federal Reserve Bank of New York, joins us to discuss. He’ll also talk about one of the most consequential economic decisions of the decade: when, at long last, to raise interest rates. That determination, which will have the effect of tapping the brakes of the economy, will revolve around how strong the labor market has become and whether prices are threatening to rise too quickly.