US EditionFed 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.
54 Articles
54 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 - West Hawaii Today
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.
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.
Treasury Yields Fall as Investors Anticipate Rate Cut
Treasury yields fell to their lowest in a week as investors increasingly bet that the Federal Reserve will cut interest rates in September. This follows weak jobs data and inflation data that didn't reveal a severe impact on prices from tariffs. U.S. Treasury Secretary Scott Bessent also reiterated
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