• Treasury Secretary Scott Bessent criticizes Federal Reserve policy, citing new BLS data that revised 2024 job creation downward by nearly one million positions.
  • Combined with prior revisions, the total "Biden jobs overstatement" amounts to roughly 1.5 million, suggesting a weaker economic handoff to the Trump administration.
  • The administration is using the data to bolster its argument for more accommodative monetary policy, aligning with former President Trump's view that high rates are restrictive.

Treasury Secretary Scott Bessent launched a public broadside against the Federal Reserve on Thursday, accusing the central bank of "choking off growth" by maintaining high interest rates. His critique hinges on newly released Bureau of Labor Statistics data, which revealed that job creation in 2024 was nearly one million positions weaker than initially reported.

According to people familiar with the matter, the substantial downward revision has provided fresh ammunition for administration officials who argue that the previous administration overstated the economy's resilience. Bessent, a former hedge fund manager with decades of macroeconomic analysis experience, framed the revisions as part of a cumulative "Biden jobs overstatement" totaling approximately 1.5 million positions. He argued these figures demonstrate that the economy inherited by the Trump administration was fundamentally weaker than believed, validating his and the former president's long-held stance that the Fed's restrictive policy is hampering expansion.

The Treasury Department did not immediately respond to a request for further comment on the secretary's remarks. The critique, delivered at an economic forum, signals a more confrontational approach from the White House toward the independent central bank. It echoes tensions seen during Trump's first term, when he frequently criticized Fed Chair Jerome Powell for not cutting rates aggressively enough.

Market observers note that the administration's position puts it at odds with a significant portion of economists, who warn that premature rate cuts could rekindle inflation. Bessent's comments also come amid a parallel debate over the new administration's tariff policies, which he has asserted will not be inflationary—a view that diverges from mainstream economic consensus. The revised jobs data will likely fuel further political debate over the accuracy of federal economic reporting and the appropriate path for monetary policy as signs of a slowing labor market emerge.