Latest news with #economicforecasts
Yahoo
17 hours ago
- Business
- Yahoo
Bessent says Fed forecasts 'politically biased'
WASHINGTON (Reuters) -U.S. Treasury Secretary Scott Bessent on Wednesday suggested without evidence that the Federal Reserve's widely followed economic forecasts are motivated by politics, as the Trump administration steps up pressure on the U.S. central bank to cut interest rates. "The Fed publishes something called a summary of economic projections, and it's pretty politically biased," Bessent said, summarizing the projections as forecasts for one to two quarter-point interest-rate cuts this year. President Donald Trump has demanded the Fed deliver an immediate 300 basis-point rate cut. The Fed publishes interest-rate forecasts from each of its 19 policymakers each quarter and does not identify which policymaker made which forecast. In June, eight projected two quarter-point interest-rate cuts this year, seven projected none, two saw one interest rate cut and two saw three. Two of the Fed Board's Trump appointees - Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman — have each articulated economic reasons for supporting a rate cut this month. Fed Chair Jerome Powell, also a Trump appointee, has not signaled such support. Fed policymakers universally reject the idea that politics have any role in their monetary policy decisions, and say that to suggest they do undermines the central bank's credibility and its ability to do its job fighting inflation and promoting maximum employment. Sign in to access your portfolio
CNA
18 hours ago
- Business
- CNA
Bessent accuses Fed of ‘politically biased' forecasts, Fed pushes back
WASHINGTON: US Treasury Secretary Scott Bessent on Wednesday (Jul 23) suggested, without providing evidence, that the Federal Reserve's economic forecasts are influenced by political considerations, a charge the central bank has rejected. "The Fed publishes something called a summary of economic projections, and it's pretty politically biased," Bessent said. He was referring to the Fed's widely followed quarterly projections that reflect the views of its 19 policymakers on key economic indicators including interest rates. Bessent said the forecasts amount to expectations for just one or two quarter-point interest-rate cuts this year, which he claimed does not reflect current economic realities. President Donald Trump has called for an immediate 300 basis-point rate cut to boost growth. The summary of economic projections, released after each Fed policy meeting, does not attribute forecasts to individual policymakers. In June, eight officials projected two rate cuts in 2025, seven saw no change, two expected one cut, and two projected three. Several of Trump's appointees to the Fed, including Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman, have publicly backed a rate cut this month based on economic data. However, Fed Chair Jerome Powell, also a Trump appointee, has not indicated support for such a move. The Fed has consistently rejected claims of political influence, maintaining that its policy decisions are guided by its dual mandate of maximum employment and price stability. 'Politics play no role in our decisions,' a Fed spokesperson said. 'Suggesting otherwise undermines the credibility of the institution and the effectiveness of monetary policy.' The Trump administration has increased its pressure on the central bank in recent months, arguing that high interest rates are stifling investment and job creation as the 2026 presidential campaign cycle begins to take shape.
Yahoo
18 hours ago
- Business
- Yahoo
Bessent says Fed forecasts 'politically biased'
WASHINGTON (Reuters) -U.S. Treasury Secretary Scott Bessent on Wednesday suggested without evidence that the Federal Reserve's widely followed economic forecasts are motivated by politics, as the Trump administration steps up pressure on the U.S. central bank to cut interest rates. "The Fed publishes something called a summary of economic projections, and it's pretty politically biased," Bessent said, summarizing the projections as forecasts for one to two quarter-point interest-rate cuts this year. President Donald Trump has demanded the Fed deliver an immediate 300 basis-point rate cut. The Fed publishes interest-rate forecasts from each of its 19 policymakers each quarter and does not identify which policymaker made which forecast. In June, eight projected two quarter-point interest-rate cuts this year, seven projected none, two saw one interest rate cut and two saw three. Two of the Fed Board's Trump appointees - Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman -- have each articulated economic reasons for supporting a rate cut this month. Fed Chair Jerome Powell, also a Trump appointee, has not signaled such support. Fed policymakers universally reject the idea that politics have any role in their monetary policy decisions, and say that to suggest they do undermines the central bank's credibility and its ability to do its job fighting inflation and promoting maximum employment. Sign in to access your portfolio
Reuters
18 hours ago
- Business
- Reuters
Bessent says Fed forecasts 'politically biased'
WASHINGTON, July 23 (Reuters) - U.S. Treasury Secretary Scott Bessent on Wednesday suggested without evidence that the Federal Reserve's widely followed economic forecasts are motivated by politics, as the Trump administration steps up pressure on the U.S. central bank to cut interest rates. "The Fed publishes something called a summary of economic projections, and it's pretty politically biased," Bessent said, summarizing the projections as forecasts for one to two quarter-point interest-rate cuts this year. President Donald Trump has demanded the Fed deliver an immediate 300 basis-point rate cut. The Fed publishes interest-rate forecasts from each of its 19 policymakers each quarter and does not identify which policymaker made which forecast. In June, eight projected two quarter-point interest-rate cuts this year, seven projected none, two saw one interest rate cut and two saw three. Two of the Fed Board's Trump appointees - Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman -- have each articulated economic reasons for supporting a rate cut this month. Fed Chair Jerome Powell, also a Trump appointee, has not signaled such support. Fed policymakers universally reject the idea that politics have any role in their monetary policy decisions, and say that to suggest they do undermines the central bank's credibility and its ability to do its job fighting inflation and promoting maximum employment.
Yahoo
19 hours ago
- Business
- Yahoo
Bessent says Fed forecasts 'politically biased'
WASHINGTON (Reuters) -U.S. Treasury Secretary Scott Bessent on Wednesday suggested without evidence that the Federal Reserve's widely followed economic forecasts are motivated by politics, as the Trump administration steps up pressure on the U.S. central bank to cut interest rates. "The Fed publishes something called a summary of economic projections, and it's pretty politically biased," Bessent said, summarizing the projections as forecasts for one to two quarter-point interest-rate cuts this year. President Donald Trump has demanded the Fed deliver an immediate 300 basis-point rate cut. The Fed publishes interest-rate forecasts from each of its 19 policymakers each quarter and does not identify which policymaker made which forecast. In June, eight projected two quarter-point interest-rate cuts this year, seven projected none, two saw one interest rate cut and two saw three. Two of the Fed Board's Trump appointees - Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman -- have each articulated economic reasons for supporting a rate cut this month. Fed Chair Jerome Powell, also a Trump appointee, has not signaled such support. Fed policymakers universally reject the idea that politics have any role in their monetary policy decisions, and say that to suggest they do undermines the central bank's credibility and its ability to do its job fighting inflation and promoting maximum employment. Solve the daily Crossword
