00:00 Benevolence
Treasury Secretary Scott Bessant said the Fed needs to do its part to promote investment in the economy and said interest rates need to be significantly lowered.
00:10 Scott Bessant
The White House can only do so much. To some extent, the Fed must also fulfill its responsibilities. This is part of stimulus investment. I think we’re still well above the neutral rate, and I don’t think we should be in restraint mode.
00:32 Benevolence
Besant said the Fed just needs to keep an open mind, citing former Fed Chairman Alan Greenspan, who refused to raise rates during the tech boom of the 1990s, allowing the economy to expand. Bessant said he believes rates should be between two and a half and three and a quarter percentage points, although he did not have a specific rate target. Of course, current interest rates range from three and a half to three and three quarters percent.
01:05 Benevolence
Now, Besant did provide an update on the race to be the next Fed chair, saying that the four candidates under consideration have one more interview to do with Rick Rieder, BlackRock’s global head of fixed income. He said the president is expected to announce his choice for the next Fed chair before or after attending the World Economic Forum in Davos, Switzerland. It is scheduled to take place on January 21st.
01:41 Benevolence
Now, Bessant has also provided some clarification on the president’s announcement banning UH institutional investors from purchasing single-family homes, saying it won’t be retroactive. They don’t force sell. Instead, it will apply to future purchases.
02:08 Benevolence
We also get the latest news on tax season. Bessant said the tax filing season will begin on January 26, which he said is the earliest in a decade and will allow Americans to benefit from huge tax returns as early as possible. He said this will be a major driver of the economy this year. Josh.
02:30 Josh
OK, Jen, thank you. Appreciate it.
