Former White House advisor Gary Cohn: 'The Fed has lost control'

Per Business Insider

The former White House advisor, Gary Cohn, has shared his thoughts on the Federal Reserve, saying it has "lost control." This was within a statement where Cohn, the now director of the National Economic Council, said that Cohn actually outsourced monetary policy.

This came as the advisor said that the Feds had decided to focus its task on the banking sector from "slowing the economy." Cohn gave a statement to CNBC saying the Feds were outsourcing its monetary policy.

Cohn: "He's outsourcing it by saying, 'look ... what I see on deposits leaving these banks, I don't believe they are going to loan money, or as much money, and therefore we're going to see a natural contraction in the economy.'"

The former White House advisor said financial tightening would mean a rate hike of 25 basis points. It was noted that the economy was slowed down by the Fed and US banks as lenders didn't have excess deposits that they could give on-demand to buyers.

Cohn: "I think it's getting harder. Now that the Fed has lost control, it is more difficult,"

The National Economic Council director said that a recession is more possible and that avoiding one is now more difficult. He noted that previously, the Fed had more of a chance for a soft landing.

Cohn: "My view is they want to stay here as long as they can... The worst mistake they can make is to cut and then have to raise again."

Recently, Jeremy Siegel said in a Fortune opinion piece that the "Fed shrapnel" was behind the collapse of Silicon Valley Bank. It was mentioned that the economy could be sent into a recession.

After previously making a distinction of which banks could receive the Fed's "treatment," Yellen then said that the US Treasury would be ready to take "additional action if warranted" to stabilize banks.

See flow at unusualwhales.com/flow.

Other News:

Resources:

Business Insider

CNBC

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.