Economics
Mnuchin Asked About Fed Option That Could Avoid Rate Hikes
- Treasury chief raises possibility of faster balance-sheet cut
- Mnuchin’s questions come amid Trump’s repeated attacks on Fed
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Treasury Secretary Steven Mnuchin privately asked bond dealers and investors in October whether they want the Federal Reserve to tighten monetary policy by raising interest rates or through faster cuts in its securities portfolio, six people familiar with the matter said.
Mnuchin’s question could be seen as suggesting a way for the central bank to accomplish its goal of preventing a strong economy from overheating without triggering the ire of President Donald Trump, who has blasted Fed Chairman Jerome Powell for raising rates. For his part, Mnuchin has refrained from commenting on monetary policy, citing the importance of the Fed’s independence.