US Treasury Secretary Reiterates Rate Cut Before September, Says Fed Misjudged Inflation Rise

BlockBeats News, July 3 — Nick Timiraos, a Wall Street Journal reporter often referred to as the “Fed whisperer,” wrote that U.S. Treasury Secretary Bessent once again stated in an interview that the Federal Reserve should be able to cut interest rates before September, based on its own criteria for rate cuts. Bessent said, “I believe that if the criterion for rate cuts is that tariffs will not lead to inflation, and if the Fed is going to follow this standard, then they can act ahead of time, but certainly before September. However, I do not agree with the Fed’s standard, but if they are going to follow it, then why not implement it in the fall?”

Bessent stated that the Fed’s inflation forecasts have been wrong, but he does not question the Fed’s view that economic growth will slow, and said that the forecast of slower growth should prompt the Fed to resume rate cuts.

Bessent previously said he would not comment on future monetary policy.