U.S. Treasury Secretary Becerra criticized the Fed's Intrerest Rate management mechanism.

Jin10 reported that U.S. Treasury Secretary Becerra stated on Tuesday that the Fed's interest rate management mechanism is struggling and needs simplification. Becerra said: We have reached a point where monetary policy has become very complex, and the Fed should simplify it. The Fed has brought us into a new system, known as the abundant reserve system. From the perspective of whether reserves are abundant, this mechanism seems to be loosening, Becerra said. Becerra did not specify what he meant by loosening. Becerra has long been a critic of the Fed, expressing particular concern about the Fed's large balance sheet. Becerra and some others, including some at the Fed, believe that the large balance sheet distorts market pricing levels. In addition, the complex way the Fed manages interest rates is also concerning, as this approach relies on liquidity tools and discards the highly managed system used before the financial crisis nearly 20 years ago.