"World's Easiest Job"! Big Short: The U.S. doesn't need the Federal Reserve, it should be taken over by the Treasury!

Michael Burry, known for shorting the 2008 subprime mortgage crisis as the "Big Short," has once again made shocking statements, this time targeting the Federal Reserve. He believes that the U.S. Federal Reserve is an unnecessary institution whose functions could be entirely taken over by the Treasury Department, as he sees running the Federal Reserve as "the easiest job in the world."

Burry's latest remarks, following his recent return to the public eye and high-profile bearish stance on tech stocks, undoubtedly fuel the intense debate in the market regarding the future policy path of the Federal Reserve. In a podcast interview with writer Michael Lewis on Tuesday, Burry warned that there is almost no reason to cut interest rates currently, and any easing measures could "suffocate" savers and fixed-income investors.

He stated that monetary policy could be guided by the U.S. Treasury, arguing that the functions of the two departments are "almost the same." This radical viewpoint comes at a time when the market is highly focused on the independence of the Federal Reserve and the potential impact of future political changes on it, undoubtedly prompting investors to reflect on the long-term stability of the U.S. monetary policy framework.

Burry's "easy" assessment of the Federal Reserve's work echoes past remarks by Trump, who previously described the Federal Reserve chair as having "the easiest job in the world": playing golf for 29 days a month.

"Big Short": The Federal Reserve Has Caused a Century of Damage

In the podcast, when asked about his views on the independence of the Federal Reserve, Burry candidly stated that he has "a sick view" of it. He believes that the central bank has caused significant damage over the past century and hinted that its demise could be related to political interference.

Burry speculated that if Trump were to exert more control over the Federal Reserve, it could signify "the end of the Federal Reserve." He further explained:

"Because if he were to take charge of the Federal Reserve, then everyone would hate it, not just me."

Burry directly pointed to the current policy tendencies of the Federal Reserve. He believes that despite signs indicating inflationary pressures are resurfacing, the Federal Reserve is still prepared to shift towards easing at the December policy meeting.

"We don't need it," Burry added when discussing the Federal Reserve. "For example, why would they cut interest rates? There is absolutely no reason to cut rates now." He warned that lowering interest rates would "suffocate" savers and fixed-income investors in the economy, directly impacting those who rely on interest income.

Treasury Takeover: The Two Departments Are "Almost the Same"

Burry also believes that the roles of the Federal Reserve and the Treasury can largely be interchangeable:

"I mean, they are almost the same department."

He stated that the Federal Reserve sets short-term interest rates and acts as a buyer of government debt, while the Treasury issues bonds to finance the government. In his view, the boundaries of these functions are not insurmountable. He concluded:

"I don't think the Federal Reserve has done anything particularly helpful. I think it's the easiest job in the world." At the time Burry made these remarks, he was making a comeback from a years-long silence on social media and was unusually active. The investor, who rose to fame for successfully shorting the U.S. real estate market before the 2008 financial crisis, has recently sounded multiple alarms about the market.

Since returning to the spotlight, Burry has repeatedly warned of a bubble in the U.S. stock market and disclosed new short positions against technology companies such as Nvidia and Palantir, while also launching a new paid Substack column. His sharp criticism of the Federal Reserve can be seen as the latest in a series of contrarian market views, further confirming his reputation as Wall Street's most famous "big short."