Rate cut unlikely at next Fed meeting: US Treasury Secretary

US Treasury Secretary Scott Bessent said he does not expect the Federal Reserve to cut interest rates at its meeting today, urging monetary policymakers to adopt a more open stance toward future decisions.

At an event in Washington on Wednesday, Bessent said financial markets had already begun pricing in interest rate cuts in the coming months, but emphasized that the Federal Reserve should adopt a more open and flexible approach to macroeconomic data.

The secretary also criticized previous Fed estimates regarding the inflationary impact of tariffs imposed by President Donald Trump, noting that those duties did not result in a significant rise in prices as initially expected.

Commenting on ongoing trade negotiations, Bessent urged calm, saying there is no need to panic if deals with some countries are not finalized by August 1, when reciprocal tariffs are set to take effect.