🚨 U.S. Treasury Secretary Slams the Federal Reserve: “Outdated Models, Wrong Forecasts” — Leadership Shake-Up Looming by December🚀
Following the Federal Reserve’s latest 25-basis-point rate cut, Treasury Secretary Scott Basent launched a rare and direct criticism of the central bank, calling its decision-making “out of touch with economic reality.” While acknowledging that the move was “a step in the right direction,” Basent accused the Fed of relying on obsolete models and consistently inaccurate forecasts for inflation and growth.
In a pointed remark, Basent revealed that a second round of internal interviews is scheduled for December — a clear signal that the administration is preparing to select Jerome Powell’s potential successor before Christmas. Behind closed doors, Washington insiders now believe the transition of Fed leadership has quietly begun.
Basent’s critique focused on three major failures:
Slow response to changing economic conditions, with rate cuts lagging behind the data.
Policy paralysis driven by internal divisions and inconsistent indicators.
Outdated forecasting models that fail to capture real-time trends in employment and inflation.
“The Fed needs a leader who’s willing to break with the old framework and rebuild the decision process from the ground up,” Basent declared.
Meanwhile, in his post-meeting press conference, Chair Jerome Powell defended his cautious stance, citing “uncertainty and disagreement” within the Fed. He also noted that the ongoing government shutdown has disrupted key economic data, complicating future policy decisions.
With the December meeting approaching, Powell’s comments suggest that another rate cut is far from guaranteed. But Basent’s intervention has made one thing clear: the Trump administration is moving aggressively to reshape the future of the Federal Reserve.