FX.co ★ U.S. Treasury’s Bessent Expects Fed Rate Cut by September

U.S. Treasury Secretary Scott Bessent indicated on Tuesday that it is plausible for the Federal Reserve to reduce interest rates by September, aligning with President Donald Trump's ongoing advocacy for rate cuts. During an appearance on Fox News, Bessent remarked, "I believe the criteria suggest that tariffs have not been inflationary. If they adhere to this criterion, rate reductions could occur sooner, but certainly by September." He expressed his divergence from the Federal Reserve's rationale, stating, "If the criteria are followed, then why not consider a reduction in the fall?" Currently, the Federal Reserve's policy rate is set between 4.25% and 4.50%. Recently, there has been increasing speculation about the possibility of a new cycle of easing due to shifting inflation and trade conditions.