US Treasury Secretary Bessent Confident Fed Will Cut Rates by September

US Treasury Secretary Bessent Confident Fed Will Cut Rates by September

US Treasury Secretary Bessent said on Tuesday that he believes the Federal Reserve will cut interest rates by September, with the possibility of a rate cut even earlier depending on evolving economic data.

In a Fox News interview, Bessent noted:

"In my opinion, based on the data and signals we’re seeing, the Fed will lower interest rates before the fall—but certainly by September."

This statement adds to growing market expectations of monetary easing as inflation shows signs of moderation and growth slows in key sectors of the U.S. economy.

Market Expectations Align with Bessent’s Outlook

Markets have already begun pricing in a potential rate cut by the Federal Reserve, with traders watching closely for any dovish signals in upcoming FOMC meetings.

Investors will be particularly attentive to labor market data, inflation reports, and Fed speeches, which could reinforce Bessent’s timeline for a policy shift.

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