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What Do Trump, Bessent And Warsh Have In Mind For The Fed?
The writing's on the wall, and it's so large by now that Stevie Wonder could read it.
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“We had to struggle with the old enemies of peace – business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.”
? Franklin D. Roosevelt
Great point, too often overlooked by so many, that if trump’s sycophants are talking about change publicly, then the eventual change is often worse (or much worse) than the made-for tv preview.
Does Bessent feel like the Department of the Treasury has “succeeded” in its mission at all times?
Now Bessent wants to know why the Fed has “operating losses”
—— Today in a CNBC interview, I called for a review of the Federal Reserve. It is my belief that the central bank should conduct an exhaustive internal review of its non-monetary policy operations. Significant mission creep and institutional growth have taken the Fed into areas that potentially jeopardize the independence of its core monetary policy mission.
As I have said many times, the Fed’s conduct of monetary policy “is a jewel box” that should be walled off to preserve its independence. This independence is a cornerstone of continued U.S. economic growth and stability.
However, this autonomy is threatened by persistent mandate creep into areas beyond its core mission, provoking justifiable criticism that unnecessarily casts a cloud over the Fed’s valuable independence on monetary policy.
While I have no knowledge or opinion on the legal basis for the massive building renovations being undertaken on Constitution Avenue, a review of the decision to undertake such a project by an institution reporting operating losses of more than $100 billion per year should be conducted.
The Fed does regular reviews of its monetary policy framework. I would urge Fed leadership to similarly undertake, publish and implement a comprehensive institutional review across its entire mission to buttress its credibility. It will go a long way towards strengthening the Fed’s credibility with the American people on its core mission of guiding our nation’s monetary policy.
There is nothing that sickens me more than people complaining about something they know the reason for (without stating the reason). Bessant acting like this short term operating loss is something wrong when he damn well knows why it has happened is the lowest form of servility and douchebaggery.
This is a page out of the smash the USPS playbook for its operating “losses” that have little to do with its operations, but instead flow from prefunding pension obligations and maintaining far-flug rural outposts in mainly red states. But as everyone knows, the Post Office sucks, as does the IRS and so now The Fed. Maybe we should just stop referring to government agencies using the article “The” at the top. Makes about as much sense as putting Hassett in charge of anything.
I agree he wants to fire the people who know what they are doing and hire incompetent sycophants. A little while ago you spent at least 6 months talking about the incompetent Turkey president, if I recall correctly inflation went to 20%. That is where we are headed.
If you truly don’t know what they do at the Fed, then you’re not qualified to lead Treasury.