BREAKING Treasury Chief SLAMS the Federal Reserve: “Outdated. Out of Touch. And Heading for Collapse.”

Washington just got shaken — hard.

U.S. Treasury Secretary Scott Basent didn’t just criticize the Fed… he declared war on it.

Following the Fed’s 25bps rate cut, Basent went on record calling the central bank’s entire framework “broken beyond repair.”

He accused Powell’s team of being stuck in the past, using models that belong in museums, and missing every major call on inflation and growth over the past two years.

Is Powell on his way out?

Basent hinted that a “Phase Two Evaluation” of Fed leadership is already on the calendar for December — and insiders are whispering that a replacement shortlist could be finalized before Christmas.

If true, this could mark the biggest shift in U.S. monetary leadership in decades.

The Core Clash:

1. Lagging Policy: The Treasury says the Fed is always one step behind real-world data.

2. Internal Chaos: Staff divisions and outdated analytics are crippling decision-making.

3. Reality Gap: The Fed’s models, Basent argues, no longer match modern financial dynamics.

Basent ended with a cold, cutting line:

> “We don’t need a cautious pilot steering yesterday’s plane. We need an architect — ready to rebuild the entire system.” 🧱💬

Meanwhile, Powell stayed measured in his reply, blaming data gaps and government shutdown delays for the Fed’s conservative stance — but the damage was done.

👁️‍🗨️ This isn’t just policy tension — it’s a power struggle.

The Treasury vs. The Fed.

Old guard vs. new order.

And Trump’s administration? Watching closely — ready to pull the trigger on a new era of economic control.

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