Former Treasury Secretary, Lawrence of Samars, said that the pricing of the bond market does not rise to judge what the Federal Reserve should do at interest rates, and that it will be a “very serious mistake” for policy makers next week.
“It was a wrong mistake to already be mitigated, and it would be a very serious mistake in mitigating this next meeting,” Samarz said on Bloomberg TV.Wall Street WeekWith David Westin. He said that the reduction on May 7 would undermine the confidence in the design of the Federal Reserve to reduce inflation, causing high -term borrowing costs.
It is widely expected that the President of the Federal Reserve, Jerome Powell and his colleagues stand at the meeting next week, with inflation continued to increase their 2 % goal and the prices waved on the horizon of President Donald Trump’s rise. Trump has again and againPowell criticizeTo not move this year, on the pretext that the decrease in energy and other prices justify the rates of price reduction.
Earlier on Thursday, Treasury Secretary, Scott Besin, highlighted that the treasury revenues for two years are less than the night interest rate in the Federal Reserve. Pesin said in an interview with that Fox a job.
“It is somewhat not local to be logical from two years to what the Federal Reserve Bank should do.”. “I did not study Minister Bessin’s comments closely, but if it indicates comments that can be interpreted reasonably as mandatory regarding the Federal Reserve, this seems to be an extraordinary option for the Treasury Secretary – and choose my problem as well.”
Presidential comparison
Bessent repeated in his appearance that he and the president focus on treasury revenues for 10 years-“targeting this point on the curve.” However, Trump continued to explode Powell.
“The president’s advice is really misleading,” Smur He added, “In many ways, in fact, the Treasury Secretary comments on the Federal Reserve,” he added.
“People understand that the presidents are political figures called to address all issues – while they are considering treasury trustees as advanced financial professionals who must know everything about the independence of the Federal Reserve,” said Samarz.
The revenue for two years reached about 3.70 % as of 1:57 pm in New York, compared to an effective federal funds rate of 4.33 %. The Federal Reserve currently targets the rate of federal funds with a range of 4.25 % to 4.5 %. The revenue for ten years reached about 4.23 %, decreased from the top of 4.5 % before Trump took office.
In a brief memorandum of customers after Bessnt’s statements, “Treasury Secretary knows how to feel the market. Wage growth and salaries are also less than the level of federal reserve fund
“I will not argue with the market ruling that the full set of developments in the economy indicates a mitigator than it seemed necessary a month or two,” Smars said. The economy said, “It may seem more softening today,” more than two months before it also indicated “disturbing signs” of inflation.
This story was originally shown on Fortune.com
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