Bescent: Not urging the Federal Reserve to cut interest rates, just citing model results
2025-08-14 13:18:16
On August 14, US Treasury Secretary Vincent Bescent said he was not asking the Federal Reserve to make a series of interest rate cuts, but only pointed out that the model showed that the "neutral" rate would be about 1.5 percentage points lower than it is now. "I'm not telling the Fed what to do," Mr. Bescent said, referring to remarks the previous day that the Fed "could start a series of rate cuts". "What I'm saying is that to get to a neutral rate, it would take about 150 basis points of rate cuts," Mr. Bescent said on Thursday. If I believe in the existence of a neutral rate, I think there is room for a series of rate cuts, but I am not calling for a rate cut, nor am I calling for it, I am just saying that the neutral rate measured by the model is about 150 basis points lower than the current level. "
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