Bescent: The possibility of the Fed cutting interest rates by 50 basis points is very high

In an interview, US Treasury Secretary Vincent Bescent said that the Fed's interest rate should be 150-175 basis points lower than it is now, and that if the data were accurate, the Fed could have cut interest rates earlier. Bescent believes that the Fed has the possibility of cutting interest rates by 50 basis points, and a series of rate cuts could start with a 50 basis point cut in September. When referring to the candidate for the Fed chair, he mentioned that they will cast a large net of 10-11 people. He also said that he had proposed a "shadow Fed chair", but now he does not think it is necessary. In addition, Bescent believes that the Fed does not need to resume large-scale asset purchases (QE). When talking about the employment report, he said he did not support stopping the release of the employment report, but stressed the need for reliable data. Some analysts say that the possibility of the Federal Reserve cutting interest rates by 50 basis points in September is almost zero. To achieve this, we will probably need the non-farm payrolls report in September to be weak again.