Treasury Secretary Bessent Calls for Aggressive Fed Rate Cuts, Starting with 50 Basis Points in September

US Treasury Secretary Scott Bessent has urged the Federal Reserve to implement a cycle of interest-rate reductions, suggesting the central bank's benchmark rate should be lowered by at least 150 basis points. In a Bloomberg Television interview, Bessent projected a series of cuts beginning with a 50 basis-point reduction in September, citing economic models that indicate current rates are too restrictive.

The call for monetary easing comes as global markets assess the potential impact on risk assets, including cryptocurrencies. Historically, lower interest rates have driven capital toward alternative investments like Bitcoin and ethereum as traditional yields decline. Fed policymakers maintained their target rate last month, but Bessent's remarks signal growing political pressure for accommodative policy.