US rates should be lowered by 150-175 bps, says Scott Bessent

US Treasury Secretary Scott Bessent said interest rates are “too constrictive” and should likely be 150-175 basis points lower.

“There’s a very good chance of a 50 basis point rate cut,” Bessent said Wednesday. “We could go into a series of rate cuts here, starting with a 50 basis point rate cut in September.”

In an interview on Bloomberg Television, Bessent said the Federal Reserve could be heading into a series of rate cuts in the upcoming months, starting with a half-point reduction in September.

Bessent added that by any model, rates “should probably be 150, 175 basis points lower.”

The US central bank has held the benchmark interest rate steady this year in a target range of 4.25%-4.5%.

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