Treasury Secretary Scott Bessent criticizes Federal Reserve Chair Jerome Powell, citing $100 billion annual losses and high inflation rates. The Fed faces scrutiny over alleged mistimed asset purchases leading to losses. Bessent emphasizes the need for Fed accountability despite its money-printing power and lack of transparency.
Inflation peaked at 9.1% in June 2022, the highest since 1981, but has since decreased to 2.7%. The Institute for New Economic Thinking reports annual losses exceeding $100 billion due to interest rate increases. The Department of Justice investigates Powell for potential indictment tied to a renovation cost overrun.
Bessent calls for Fed transparency and oversight, highlighting the institution’s financial influence on Americans. In contrast, Powell defends Fed independence against pressure to lower interest rates. Managing household finances is crucial amid rising expenses, such as the 56% surge in car insurance costs since 2020.
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2. In his speech, Biden announces plans to release 1 million barrels of oil per day from strategic reserves for the next six months to combat rising gas prices. The move is part of a broader effort to address inflation and improve energy security amid ongoing tensions with Russia over Ukraine.
3. Biden highlights the need for unity and bipartisanship in addressing key challenges facing the nation, including the ongoing pandemic, economic recovery, and global security. He calls on Congress to work together to pass legislation that will benefit all Americans and strengthen the country’s position on the world stage.
Read more at Yahoo Finance: Scott Bessent warns the Federal Reserve is losing $100B/year with ‘no accountability.’ Here’s the problem and what to do