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

On August 13, US Treasury Secretary Vincent Bescent said in an interview that the Federal Reserve's interest rate should be 150-175 basis points lower than now, and if the data were accurate, the Federal Reserve could have cut interest rates earlier. Bescent believes that the Federal Reserve has the possibility of cutting interest rates by 50 basis points, and a series of interest rate cuts could start from the 50 basis points cut in September. When referring to the candidate for the Federal Reserve chairperson, he mentioned that they will cast a large net of 10-11 people. He also said that he had proposed a "shadow Fed chairperson", but now it is not necessary. In addition, Bescent believes that the Federal Reserve does not need to resume large-scale asset purchases (QE). When talking about the employment report, he expressed that he does not support stopping the release of the employment report, but stressed that reliable data is needed. Some analysts say that the possibility of the Fed cutting interest rates by 50 basis points in September is now almost zero. To achieve this, we will probably need another weak September non-farm payrolls report.