Treasury Official Warns Fed Models Fail to Account for Trump’s Economic Policies

This analysis relies on the original Fox Business segment [1], which aired on December 10, 2025 (UTC) and is the sole available source (no external news coverage has yet been indexed due to the segment’s recency). Joe Lavorgna, Counselor to the Treasury Secretary, addressed two core topics during the ‘Kudlow’ program:

1. Growing calls for Fed reform
   : Lavorgna referenced broader discourse around potential changes to the Fed’s structure or processes.
2. Trump administration’s economic growth emphasis
   : A central warning from Lavorgna was that the Fed’s current modeling frameworks do not incorporate or account for President Trump’s policy agenda.

• The segment signals the administration’s public critique of the Fed’s technical infrastructure, framing it as a potential barrier to aligning monetary policy with current economic growth priorities.
• The timing (a live segment with limited subsequent coverage) suggests the comments may represent an early, deliberate communication of the Treasury’s perspective on Fed operations, potentially preceding more formal policy discussions.

• Risks
  : Increased market volatility could emerge if tensions between the Treasury and Fed become more public, as investors may question the consistency and independence of monetary policy [1].
• Opportunities
  : The call for Fed model updates could spark discussions leading to more timely and policy-aligned monetary frameworks, potentially enhancing the effectiveness of economic stimulus or stabilization efforts.

Joe Lavorgna, a senior Treasury official, has publicly raised concerns that the Federal Reserve’s current models fail to account for President Trump’s economic policies. The comments were made in the context of broader calls for Fed reform and the administration’s focus on economic growth. Given the segment’s recency, additional context, expert reactions, and policy implications may emerge as media coverage develops.