- Doing second round of Fed chair interviews
- Will present set of candidates in early December
- Applauds 25 bps rate cut by the Fed but don’t agree with the communication
- Language used shows Fed is stuck in the past, models are broken
- Very optimistic for 2026 on growth, inflation levels
- Jobs growth will rebound very strongly
The irony in his comments is that a deteriorating labour market is what is driving the Fed to cut rates here. So, something’s gotta give. In any case, he’s just doing his job as Trump’s puppet so the comments are not surprising. Circling back to the Fed shortlist, Bessent had earlier in the week confirmed that the finalists are now down to five: Christopher Waller, Michelle Bowman, Kevin Hassett, Kevin Warsh, and Rick Rieder.