Bessent Believes the Fed Should Not Postpone Rate Reductions, According to CNBC

Treasury Secretary Urges Federal Reserve to Lower Interest Rates

Photographer: Eric Lee/Bloomberg

Scott Bessent, the Treasury Secretary, has intensified his calls for the Federal Reserve to further reduce interest rates, continuing his efforts to influence US monetary policy.

In remarks prepared for a speech in Minneapolis on Thursday, Bessent emphasized that reduced borrowing costs are “the last piece needed to unlock even greater economic expansion.” He urged the Fed to act swiftly, according to excerpts shared by CNBC.

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Federal Reserve Chair Jerome Powell recently refrained from indicating whether the central bank would continue its streak of three rate cuts from late 2025. The next policy meeting is scheduled for January 27-28, with market expectations suggesting little likelihood of a rate change at that time. Increasingly, Fed officials have advocated for maintaining current rates until further data on inflation and employment becomes available.

Bessent also predicted that 2026 would bring “the benefits” of former President Donald Trump’s “America first agenda,” as reported by CNBC. He credited Trump’s tax reforms, trade agreements, and deregulation efforts for laying the groundwork for strong economic performance.

As head of the administration’s search for a successor to Powell, whose term ends in May, Bessent has consistently echoed Trump’s stance in favor of lower interest rates.

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