US Treasury Secretary Yellen said: "The Federal Reserve has employed thousands of PhD economists, paid them high salaries, and given them lifelong achievement positions. I don't know what they are all doing; they seem to have never predicted correctly. If air traffic controllers also behaved this way, no one would dare to fly."

This outburst from the Secretary of the Treasury has essentially torn open the mysterious veil of Wall Street. Employing thousands of economics PhDs sounds like maintaining a temple that can foresee the future, but what happens? The temple's predictions are always shattered in the face of market slapbacks. This metaphor is quite harsh and vivid.

But this can't be entirely blamed on economists. Economic forecasting itself is a discipline that draws maps in the fog. Global trade, geopolitical conflicts, technological explosions, voter sentiment—countless variables dance wildly like madmen. Expecting precise predictions is as absurd as demanding weather forecasts to be accurate down to each raindrop of every cloud.

The real embarrassment for the Federal Reserve lies in the fact that its toolbox of policy instruments is somewhat malfunctioning. Facing this strange combination of "sticky inflation" and "weak growth," raising interest rates risks choking the economy, while lowering rates could reignite inflation. Models based on perfect market assumptions appear pale and powerless in the face of real political cycles and populist waves.

Yellen’s outburst may also stem from a deeper reason—a power struggle between the Treasury and the Federal Reserve. The Treasury manages spending, while the Fed controls money printing and interest rates. When economic problems arise, blaming each other for "poor predictions" and "tool failures" is standard. The underlying message is, "This mess isn’t my fault."

Even more interesting is that this tirade happened during a Congressional hearing on the US