Excess Returns · Thursday, September 3, 2026
Ben Hunt argues that the credibility of both the Federal Reserve and the Treasury has been significantly damaged due to inconsistent messaging and actions. He likens this to breaking a teacup, which, even when repaired, is never the same.
“So the teacup has been broken. The teacup got broken with Kevin Warsh for his press conference at the end of August.”
“But when you come out and you say, well, what he said, which is basically, uh, new boss, same as the old boss, lots of words, lots of talk, but they will never do anything to raise rates if they can possibly help it.”
“And at the end of the day is you can see this in our results. You have enormous loss of credibility for the Treasury and the Fed.”