Treasury Secretary Scott Bessent has expressed certainty that the Federal Reserve will lower interest rates by September 2025, adding to the growing pressure from the Trump administration on the central bank to ease monetary policy.
In a recent interview, Bessent stated that a rate cut could even come sooner than the fall. When asked if he believed the Federal Reserve would lower rates by that time, he replied, "I think they could do it sooner than then but certainly by September."
This confident assertion from the Treasury Secretary comes amidst a flurry of public statements from administration officials advocating for a reduction in the federal funds rate. Bessent has argued that market indicators, such as the inversion of the two-year Treasury yield below the fed funds rate, are signaling that the central bank's current policy is too restrictive. He has also downplayed the potential inflationary effects of the administration's tariff policies, a key concern for the Federal Reserve.
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