- U.S. Treasury Secretary Steven Mnuchin privately asked bond dealers and investors whether they would prefer tighter monetary policy through interest rate hikes or through faster reduction in the Federal Reserve's securities portfolio, Bloomberg reports, citing people familiar with the matter.
- Mnuchin asked the question to members of the Treasury Borrowing Advisory Committee at an Oct. 30 meeting. Reducing the Fed's securities portfolio might be a way for the Fed to tighten monetary policy without raising interest rates.
- Members of the TBAC include executives from Goldman Sachs (NYSE:GS), Citadel LLC, and JPMorgan Chase (NYSE:JPM).
- The news comes amid President Trump's continued criticism of the Fed for its policy of steady and gradual rate hikes.
- Previously: Trump again slams Powell: 'not even a little bit happy with my selection of Jay' (Nov. 27)
- ETFs: UUP, UDN, USDU, PLW, GOVT, EGF, TAPR, FTT, FIBR, USTB
- Now read: The Dollar Continues To Make Higher Highs
Original article