Fed could deliver series of rate cuts in coming months: US Treasury Secretary

US Treasury Secretary Scott Bessent said that the Federal Reserve may move toward a series of interest rate cuts in the coming months, starting with a half-percentage-point cut in September.

In an interview with Bloomberg TV, he clarified that interest rates are currently highly restrictive and are likely to be lowered by 150–175 basis points after the Fed has kept rates steady at 4.2%–4.5% during its meetings this year.

He added that policymakers would likely have cut rates had they seen the revised data in the latest monthly jobs report, which was released two days after their last meeting.

Bessent also said Stephen Miran’s nomination to the vacant Fed board seat still requires Senate confirmation.