US Edition
Fed cut seen near certain after inflation data, Bessent comments
- U.S. Treasury Secretary Scott Bessent called on August 13 for a series of Federal Reserve interest rate cuts totaling 150 to 175 basis points, possibly starting in September.
- This call followed weaker-than-expected July payroll growth of 73,000 and rising unemployment, which indicate a softening labor market alongside persistent inflation pressures.
- Amid these developments, the U.S. dollar declined for a second consecutive session on Wednesday, while President Trump increased pressure on the Fed to lower rates.
- The July Consumer Price Index showed headline inflation up 2.7% year-over-year and core CPI rising 3.1%, with tariff-related price increases remaining modest as many goods were bought before tariffs.
- Market expectations for a September rate cut rose to a 94% probability, but some experts note elevated inflation and labor market risks could complicate or delay such Fed action.
41 Articles
41 Articles
The Mexican peso lost to the dollar after Scott Bessent pushed the Fed to cut 150 points to the interest rate and revealed that Trump has a list of 11 candidates to replace Jerome Powell. “If we look at any model, we should probably be between 150 and 175 lower base points,” he said in an interview with Bloomberg. Economic data backed up expectations of seeing a cut in interest rates from the Federal Reserve. How much did the dollar look today A…
The probability of a Federal Reserve (Fed) interest rate cut in September is now considered close to 100 percent, following data that showed that US inflation accelerated at a moderate rate in July and that Treasury Secretary Scott Bessent said he sees possible an aggressive half-point reduction due to the recent weakness of employment figures. Contract operators linked to the federal funds reference rate now put the probability of a quarter-poi…
US Treasury Secretary Scott Bessent has made this Wednesday his most explicit call to date for the Federal Reserve to carry out a cycle of interest rate cuts, suggesting that the central bank’s reference rate should be at least 1.5 percentage points lower than the current one. His request, which adds pressure to the Fed and especially to its president, Jerome Powell, occurs one day after the July inflation report was published, with ambivalent s…
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