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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.
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50 Articles
US Treasury Secretary Bessent calls for Fed rate cut
US Treasury Secretary Scott Bessent called on the Federal Reserve to cut interest rates. Bessent told Bloomberg that the benchmark should be at least 1.5% lower than its current level of 4.25% to 4.5%. President Donald Trump has also repeatedly called for lower rates, but economists are increasingly worried that US inflation is gathering pace, driven by high tariffs, and that high rates are needed to cool it down. One Brookings analyst said that…
Fed cut seen near certain after inflation data, Bessent comments - Hawaii Tribune-Herald
WASHINGTON — The likelihood of a Federal Reserve rate cut in September is now seen near 100% after new data showed U.S. inflation increased at a moderate pace in July and Treasury Secretary Scott Bessent said he thought an aggressive half-point cut was possible given recent weak employment numbers.
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…
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