Scott Bessent's Call on Interest Rates was 'Ridiculous,' Says Opinion Columnist Authers

Fed Policy & Market Commentary - Scott Besson's claim that the Fed funds rate should be 150 basis points (1.5%) lower is considered inaccurate and potentially misleading [2][4] - The industry expresses concern over suggestions of a "rogue" Fed, emphasizing the importance of calm and reasoned communication [3] - Upcoming Jackson Hole meeting may reveal a potential shift away from average index inflation targeting, a move considered ill-timed in retrospect [5] - Core inflation is above 3% and rising, requiring strong justification for policy adjustments [5] Central Bank Dissent & Rate Expectations - The Bank of England's visible dissent and split votes on interest rates have surprisingly led to smoother rate expectations compared to the US [8] - Open and honest arguments among economists, as seen in the Bank of England, can be beneficial in navigating rate expectations [9] Potential Policy Shifts - The administration might focus on recent Fed mistakes, potentially influencing future policy decisions [5] - There is a discussion on whether the Fed should adopt a more argumentative approach, similar to the Bank of England, to foster transparency and debate [6]