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Bessent Urges Fed to Start Steep Rate Cuts in September
Thursday, 14 August 2025 08:43 WIB | FISCAL & MONETARY |

U.S. Treasury Secretary Scott Bessent said Wednesday that short-term interest rates should be 1.5 to 1.75 percentage points lower than current levels, urging the Fed to begin a series of cuts starting with a 50bps reduction in September.

Speaking to Bloomberg News television network, he said, "We should probably be 150, 175 lower. I think the committee needs to step back." The Fed's benchmark rate has been at an effective 4.33% since January, after three cuts late last year, as it monitors the economic impact of tariffs. President Trump has also pushed for cuts since early this year, dubbing Fed Chair Jerome Powell "Too Late" for his slow action.

Meanwhile, in a rare comment on another central bank, Bessent said the Bank of Japan is "behind the curve" on tackling inflation. He noted discussing Japan's inflation problem with Governor Kazuo Ueda, adding, "They're going to be hiking and they need to get their inflation problem under control."

Source : Trading Economics

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