US Treasury Secretary Bessent: 50-point rate cut likely in September
Bessent, in an interview with Bloomberg Television, said that the Federal Reserve could proceed with a series of rate cuts in the coming months, starting with a half-basis point reduction in September
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US Treasury Secretary Scott Bessent said that interest rates are 'too restrictive' and should probably be lowered by 150-175 basis points.
Bessent, in an interview with Bloomberg Television, said the Federal Reserve could make a series of rate cuts in the coming months, starting with a half-basis point cut in September. "There is a very good chance of a 50 basis point rate cut," Bessent said on Wednesday. "We could proceed with a series of rate cuts, starting with a 50 basis point cut in September."
Bessent added that, under any model, rates 'should probably be 150-175 basis points lower'. The US central bank has kept its benchmark interest rate stable this year in a target range of 4.25-4.5 per cent.
Possible candidates for Fed chair according to Cnbc
Meanwhile, the Trump administration is considering among 11 candidates to replace Federal Reserve Chairman Jerome Powell when his term expires in May. This was stated by the Cnbc network. The number was also confirmed by Treasury Secretary Scott Bessent himself during an interview with Bloomberg news, but Bessent did not provide names. Sources reached by Cnbc said instead that among those interviewed will be David Zervos, chief market strategist at Jefferies, former Fed Governor Larry Lindsey, and Rick Rieder, chief investment officer for global fixed income at BlackRock. These three names join those of Michelle Bowman, Fed vice-president for supervision, Fed governor Chris Waller and Fed vice-president Philip Jefferson. Confirmed nominees also include Marc Summerlin, economic advisor to the Bush administration, Dallas Fed President Lorie Logan, and former St. Louis Fed President James Bullard.
