Bessent Demands Aggressive 50bps Fed Rate Cut Following Jobs Data Shock

Wall Street's latest drama unfolds as Bessent throws down the gauntlet—calling for a half-point Fed rate cut after jobs numbers get a brutal revision.

Markets Brace for Impact

The revision hammer dropped hard, and now one prominent voice is shouting for the Fed to panic-cut. Because nothing says 'stable economy' like kneejerk monetary policy, right?

50bps or Bust

Bessent's demand isn't just a suggestion—it's a full-throated challenge to Powell's cautious playbook. Because clearly, what the market needs right now is more volatility dressed up as 'forward guidance'.

As traders place bets on whether the Fed will fold or double down, one thing's certain: someone's getting rich off this chaos—and it's probably not you.

Bessent urges aggressive policy shift

In an interview on Tuesday, Bessent pointed to the Bureau of Labor Statistics revising May and June employment figures downward by a total of 258,000 jobs. He stated:

“If we had the original numbers, we could have been cutting in June and July. I think the real thing now to think about is: Should we get a 50-basis-point rate cut in September?”

The downward revision to jobs data followed July inflation figures showing a 2.7% year-over-year rise, slightly above forecasts but fueling hopes for looser monetary policy.

White House dismisses BLS commissioner

President Donald TRUMP abruptly removed BLS Commissioner Erika McEntarfer after the initial data release, accusing the agency of manipulating figures to undercut his administration.

Market response

The prospect of a larger rate cut has already energized markets.

Bitcoin and other digital assets rallied. According to crypto fund manager Merkle Tree Capital’s Ryan McMillin:

“A 50 basis point cut WOULD confirm risk on for the rest of the year.”

Options data show investors are still seeking downside protection, with put buying remaining strong ahead of more jobs and inflation numbers due before the Fed’s decision.