Scott Bessent, the U.S. Secretary of the Treasury, demanded a 0.50 percentage point 'big cut' in interest rates from the Federal Reserve (Fed) on the 12th (local time).
Secretary Bessent noted during an interview with Fox Business that the Labor Department significantly revised downward the employment growth figures for May and June, stating, 'If there had been accurate figures, an interest rate cut would have been implemented in June or July,' highlighting issues with data quality. He emphasized that 'whether the Fed will cut rates by 0.50 percentage points in September is an important issue.'
Secretary Bessent described the Consumer Price Index (CPI) released that day as 'fantastic,' explaining that concerns about inflation stemming from President Donald Trump's tariff policies are not consistent with the facts. Earlier that day, Trump also urged an interest rate cut through his social media platform Truth Social, considering a 'large-scale lawsuit' against Jerome Powell, the Chair of the Fed. This puts additional pressure on the Fed for a rate cut, with Secretary Bessent further emphasizing the point.
Additionally, Secretary Bessent expressed hope that Stephen Myron, the newly appointed Chairperson of the White House Council of Economic Advisers, nominated by President Trump to replace former Fed Governor Adriana Kugler, would receive confirmation from the U.S. Senate. If Myron passes Senate confirmation and is appointed as a member of the Fed, it is expected that the movement towards interest rate cuts will gain more momentum. Secretary Bessent positively evaluated Myron, stating that he is 'prudent, systematic, and has a broad perspective on the Fed.'
Meanwhile, Secretary Bessent stated regarding the extension of the tariff war truce between the U.S. and China for an additional 90 days until November that he plans to conduct further negotiations with counterparts in the next 2 to 3 months.