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Nick Timiraos reports on Kevin Hassett's critique of the Federal Reserve's recent policy shift. Hassett argued that the Fed had no valid reason for adopting a more hawkish stance during its October meeting.
This change came after a narrow majority had anticipated 75 basis points in cuts earlier in September.
Hassett’s remarks arrive amid ongoing debate about the Fed’s evolving toolkit, following recent episodes in which the central bank’s standing repo facility saw zero borrowing even after substantial activity, as noted in earlier coverage of fluctuations in the repo facility. Meanwhile, the Fed’s reliance on alternative labor data sources, such as leveraging ADP data for labor insights amidst BLS delays, continues to inform policy deliberations as the economic backdrop shifts.