Treasury Secretary Criticizes Powell's Stance on Interest Rates

U.S. Treasury Secretary Besente expressed his disappointment with Federal Reserve Chairman Jerome Powell's failure to provide a clear timeline for interest rate cuts. In an interview with Fox Business, he stated that current interest rates are too restrictive and need to be lowered.

"I am a little surprised that the Fed Chairman has not signaled a goal of at least 100 to 150 basis points of rate cuts before the end of the year," Besente said.

Inflation and Employment Risks

Speaking at an event in Rhode Island, Powell said the Federal Reserve must address the dual risks of a weakening labor market and rising inflation when making future policy decisions.

"In the near term, the risks to inflation are skewed to the upside, while the risks to employment are skewed to the downside - this is a challenging situation," Powell added. "Two-way risks mean there is no risk-free policy path."

Praise for Miran and Calls for Change

Besente praised Stephen Miran, the new Federal Reserve Board member nominated by President Trump, for advocating aggressive interest rate cuts. Miran voted against the Federal Reserve's recent decision to cut interest rates by 25 basis points, preferring a larger cut of 50 basis points.

"These meetings should be a discussion. Participants should attend with open minds," Besente said. "Like the United Nations, we see many mistakes and rigidity at the Federal Reserve, and it is good to inject fresh blood into it."

Search for a New Fed Chair

Besente said he is interviewing 11 candidates to replace Powell as Federal Reserve Chairman. He added that he plans to submit a list of three or four "very strong" candidates to Trump after conducting a second round of interviews.

"Everyone asks me what I look for when interviewing potential Federal Reserve Chairman candidates - and the answer is simple, I look for someone who is open-minded, does not look back, but looks forward," Besente concluded.

Concerns About Employment Data

Besente expressed concern about recent revisions to employment data, adding, "We see from these revisions that there must be something wrong with the engine of the economy." Despite this, Besente said he is more focused on "distribution issues" - that is, that low-income Americans bear the brunt of economic shocks - rather than worrying about a recession.