I think we could go into a series of rate cuts here, starting with a 50 basis-point rate cut in September,” Bessent said in a television interview on Wednesday. Fed policymakers last month kept their benchmark at a target range of 4.

U.S. Treasury Secretary Scott Bessent clarified Thursday he is not calling for interest-rate cuts by the Federal Reserve, saying his remarks only pointed to models showing the neutral rate about 150 basis points lower.

The current Federal Reserve interest rate is significantly higher than necessary and should be lowered, Treasury Secretary Scott Bessent said on Wednesday.