Bessant: The Fed is living in the past; its predictive models have failed.

U.S. Treasury Secretary Bessant praised the Federal Reserve's decision to cut interest rates by 25 basis points, but also pointed out that the Fed's skepticism about further rate cuts this year indicates the institution urgently needs major reforms. Bessant stated that he will conduct a second round of interviews with candidates for Fed chair in early December to replace Powell, allowing Trump to make an appointment before Christmas. Bessant said, "The current Fed is stuck in the past. Their inflation forecasts this year have been very poor, and their models have failed." (Jinshi)