TechFlow news, on November 26, according to Jinshi Data, U.S. Treasury Secretary Bessent said Tuesday that the Federal Reserve's interest rate management mechanism is struggling and needs simplification. "We've reached a point where monetary policy has become very complicated," Bessent said, adding that the Fed should "simplify the complex." "The Fed has brought us into a new regime—the so-called ample-reserves regime. Judging from whether reserves are truly ample, this framework appears to be unraveling," Bessent said. He did not clarify what he meant by "unraveling." Bessent has long been a critic of the Federal Reserve, expressing particular concern over its bloated balance sheet. Bessent and others, including some within the Fed, believe the large balance sheet distorts market pricing. Additionally, there are concerns about the Fed's complex method of managing interest rates, which relies on liquidity tools and has abandoned the tightly managed system used before the financial crisis nearly 20 years ago.
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