00:00 Jared
And investors are fully pricing in a Fed rate cut next week after weekend weaker-than-expected jobs data. Joining me now, Yahoo Finance Fed correspondent Jennifer Schonberger and Bill Adams, who’s the Comerica Bank chief economist. Jennifer, let’s start with you. Treasury Secretary Scott Besent wrote an op-ed in the Wall Street Journal over the weekend saying that the Fed must change course. What are the details?
00:28 Jennifer Schonberger
That’s right, Jared. In a Wall Street Journal editorial, Secretary Scott Besent criticized the Federal Reserve for what he called mission creep. He said the central bank needs to re-establish its credibility as an independent institution and called for an open, honest, non-partisan review. Besent who said the Fed has devolved into a monetary policy experiment, wrote in that op-ed, quote, overuse of non-standard policies, mission creep, and institutional bloat threaten the central bank’s independence. The Fed must change course. Its standard toolkit has become too complex to manage with uncertain theoretical underpinnings. Simple and measurable tools aimed at a narrow mandate are the clearest way to deliver better outcomes and safeguard Central Bank independence over time. Now, the Secretary also pointed to the Federal Reserve’s use of its balance sheet and purchase of Treasuries and bonds to steer capital through this economy, something he says should really be in the jurisdiction of markets and elected officials.
