Fed’s High Rates Are ’Choking Off Growth,’ Warns Bessent in Scathing Critique
Monetary policy hits breaking point as experts sound alarm.
The Growth Strangulation
Skyrocketing interest rates slam brakes on economic expansion—entrepreneurs shelve projects, consumers curb spending, and innovation stalls. Bessent's warning echoes across trading floors: the Fed's medicine might just kill the patient.
Market Realities Bite
Capital costs soar while traditional finance scrambles to justify outdated models. Meanwhile, decentralized alternatives quietly gain traction—because nothing inspires financial innovation quite like institutional failure.
Another case of central planners overstepping while real solutions emerge elsewhere.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“The truth: President Trump inherited a far worse economy than reported, and he’s right to say the Fed is choking off growth with high rates,” Treasury Secretary Scott Bessent said in an X post on Tuesday. Bessent added that the Bureau of Labor Statistics overstated payrolls by 1.5 million jobs during former President Biden’s tenure after the federal agency released revisions for the 12 months ended March.
Trump Calls for 300 Bps Rate Cut
A lower Fed rate makes it cheaper to borrow money, which can stimulate the economy by encouraging investment and spending. The Fed is widely expected to cut rates by at least 25 bps during the September 16-17 Federal Open Market Committee (FOMC) meeting, although Trump has previously pushed for a 300 bps cut. Barring a miracle, that won’t happen.
“Jerome ‘Too Late’ Powell should have lowered rates long ago. As usual, he’s ‘Too Late!’” Trump said in a Truth Social post last Friday.
