Bessent Urges Significant Fed Rate Cuts

In order to better encourage economic growth, David Bessent thinks that the U.S. Federal Reserve should cut interest rates by 150 to 175 basis points from their current levels. He contends that, particularly when inflation trends decline, high rates run the risk of further weakening the economy than anticipated. Bessent’s remarks contribute to the escalating market discussion over the Fed’s future course, as investors keep a keen eye out for clues of a change in policy that would lower borrowing costs and encourage investment from businesses and consumers alike.