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2025-10-31 03:20:14
Nick Timiraos, a self-proclaimed "Federal Reserve mouthpiece," stated that Treasury Secretary Bessant told Maria Baltimore that the Fed's caution regarding further rate cuts was unnecessary, as he believed inflation was no longer a problem. He praised the Fed's decision to cut rates by 25 basis points, but felt the accompanying wording showed the Fed was still stuck in past thinking patterns. He noted the Fed's inflation forecasts had been consistently poor this year, with inflation data continuing to decline and forecasts constantly being revised downwards, rendering the models completely ineffective. He couldn't understand the Fed signaling a possible reluctance to cut rates at the December meeting and believed the Fed needed a reasonable explanation. He argued that the Fed's GDP and inflation forecasts had been flawed for years and that it should be held accountable for these persistent errors. He concluded that the Fed needed a leader capable of comprehensively reforming the entire Fed system, both in terms of processes and internal operations.
