US Treasury Secretary Scott Bessent has again expressed his frustration with the Federal Reserve’s measured approach to cutting interest rates. Bessent, who is also responsible for reviewing potential candidates to replace Jerome Powell as chairman when his term expires in May, made his views known in a recent interview.
Speaking on Fox News, Bessent acknowledged the Fed’s decision to cut rates by 25 basis points this week. However, he criticised the accompanying commentary, stating, ‘The language that went with it tells me that this Fed is stuck in the past.’ Bessent’s remarks highlight a growing concern within the US government regarding the Fed’s monetary policy.
Bessent further elaborated on his concerns, pointing to the Fed’s inaccurate inflation estimates. ‘Their inflation estimates have been terrible so far this year. They keep coming down, inflation keeps coming down and their models are broken.’ He also questioned the Fed’s intentions regarding future rate cuts, particularly the possibility of holding steady at the December meeting.
