Treasury Secretary Bessent Advocates for Fed Rate Cut Amid Mixed Inflation Signals – Crypto Markets React

Treasury Secretary Scott Bessent has called for a 50 basis point Federal Reserve rate cut in September, citing the latest inflation data as justification for a shift from the central bank's prolonged hawkish stance. The July consumer price index rose 0.2% monthly and 2.7% annually, slightly below expectations, while Core CPI edged higher at 3.1% year-over-year.

Market participants interpreted the softer inflation figures as bullish for risk assets, with cryptocurrencies poised to benefit from potential monetary easing. WHITE House Press Secretary Karoline Leavitt framed the report as another inflation beat, though independent analysts note persistent price pressures in essential categories that headline figures may obscure.

The debate over true inflation metrics intensified as Truflation's alternative CPI calculation of 1.83% gained traction on social media. CORE CPI's three-month ascending streak – the first since September 2022 – suggests underlying inflationary trends that complicate the Fed's policy calculus.