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Fed’s High Rates ’Choking Off Growth,’ Says Treasury Secretary Bessent
Fed’s High Rates ’Choking Off Growth,’ Says Treasury Secretary Bessent
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BTCCSquare news:
Treasury Secretary Scott Bessent criticized the Federal Reserve's monetary policy, claiming high interest rates are stifling economic growth. The Fed has held rates at 4.25%-4.50% despite pressure from former President Trump, who advocates for a 300 basis point cut.
Bessent alleged the Bureau of Labor Statistics overstated job growth by 1.5 million during the Biden administration. Market expectations point to a modest 25 bps reduction at the September FOMC meeting, far below Trump's demand.
The debate over monetary policy comes as cryptocurrency markets remain sensitive to macroeconomic conditions. Lower rates typically boost risk assets, including digital currencies, by increasing liquidity and investor appetite for yield.
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