Bessent Criticizes WSJ Fed Reporters as Stenographers on X

US Treasury Secretary Scott Bessent on the 5th (local time) publicly criticized Wall Street Journal Federal Reserve reporters on X (formerly Twitter). Bessent accused journalists like WSJ's Nick Timiraos of being 'stenographers pretending to be journalists' who report Fed 'backroom gossip.' He stated they lack the ability to conduct actual economic or monetary policy analysis without Fed guidance. During the Powell-era Federal Reserve, a widespread market perception existed that the Fed communicated through WSJ Fed reporters, with Timiraos nicknamed the Fed's unofficial spokesperson.

Bessent Calls WSJ Reporters Stenographers in X Post

Bessent wrote in his X post that 'one of the highlights of the Wash Fed is watching stenographers pretending to be journalists like WSJ's Nick Timiraos reduced to reporting Fed backroom gossip.' He stated 'they lack the ability to conduct actual economic or monetary policy analysis because they cannot function without being spoon-fed by the Fed.'

The context for Bessent's post remains unclear. Bessent, who shares similar views with Chair Kevin Wash, has supported the abolition of forward guidance immediately after Wash's inauguration.

WSJ Fed Reporters Served as Unofficial Fed Spokespersons Under Powell

During former Chair Powell's tenure, a perception was widely spread in markets that the Fed communicated through WSJ Fed reporters. Timiraos has been called by the nickname of the Fed's unofficial spokesperson.

FAQ

What did Scott Bessent say about WSJ Fed reporters on the 5th?

Bessent posted on X (formerly Twitter) calling WSJ reporters like Nick Timiraos 'stenographers pretending to be journalists' who report Fed backroom gossip. He stated they lack the ability to conduct economic or monetary policy analysis without Fed guidance.

Why were WSJ Fed reporters called unofficial Fed spokespersons?

During former Fed Chair Powell's tenure, a widespread market perception existed that the Federal Reserve communicated through Wall Street Journal Fed reporters. Nick Timiraos was nicknamed the Fed's unofficial spokesperson due to this perceived communication channel.