Core Viewpoint - The article highlights the criticism from U.S. Treasury Secretary Mnuchin towards the Federal Reserve, emphasizing concerns over its independence due to its expanded functions and the use of non-standard policies [1][2]. Group 1: Criticism of the Federal Reserve - Mnuchin argues that the Federal Reserve's overreach in its responsibilities has jeopardized its credibility and political legitimacy, calling for a comprehensive review of the institution [1][2]. - The article indicates that the Trump administration's criticism of the Federal Reserve has escalated, questioning not only the need for interest rate cuts but also the overall operational model of the Fed [1][3]. Group 2: Call for Independent Review - Mnuchin demands an honest, independent, and non-partisan review of the entire Federal Reserve, including its monetary policy, regulation, communication, staffing, and research [3]. - He expresses anticipation for a response from the Federal Reserve regarding his call for an internal review, emphasizing that good management is achieved through action rather than mere discussion [3]. Group 3: Regulatory Framework Concerns - Mnuchin criticizes the Dodd-Frank Act for significantly expanding the Federal Reserve's regulatory scope, which he believes has blurred the lines between monetary and fiscal policy [4]. - He suggests a more coherent framework where the FDIC and OCC lead bank regulation while the Federal Reserve focuses on macro monitoring, lender of last resort liquidity, and monetary policy [4]. Group 4: Monetary Policy Experimentation - Mnuchin compares the Federal Reserve's new operational model to an uncontrolled experiment, indicating that the unconventional monetary policy tools released post-2008 financial crisis have altered the Fed's policy framework with unpredictable consequences [5][6]. - He cites the Fed's failure to accurately predict GDP growth, highlighting a significant overestimation of over $1 trillion in GDP during the recovery period [6]. Group 5: Inequality and Quantitative Easing - The article discusses Mnuchin's criticism of the quantitative easing (QE) policies post-2008, arguing that they disproportionately benefited asset owners and exacerbated wealth inequality [7]. - He points out that while large corporations benefited from low-cost debt, younger and less affluent families were left behind, suffering the most from inflation and missing out on asset appreciation opportunities [8]. Group 6: Employment Data and Federal Reserve Accountability - The article notes that the recent non-farm payroll report showed only 22,000 jobs added in August, significantly below expectations, leading to further blame directed at the Federal Reserve from Trump administration officials [9]. - Trump and other officials assert that the Fed's high-interest rates are hindering economic growth and that a reconsideration of policy is necessary in light of the weak employment data [10].