Besant: The possibility of the Fed cutting interest rates by 50 basis points is very high.

[Bessent: The likelihood of the Fed cutting interest rates by 50 basis points is very high] U.S. Treasury Secretary Bessent stated in an interview that the Fed's interest rates should be 150-175 basis points lower than they are now. If the data is accurate, the Fed might have cut rates earlier. Bessent believes there is a possibility of a 50 basis point rate cut by the Fed, with a series of cuts possibly starting from the 50 basis point cut in September. When mentioning candidates for the Fed chair, he noted that they would cast a wide net encompassing 10-11 individuals. He also mentioned that he had proposed the establishment of a "shadow Fed chair," but now considers it unnecessary. Furthermore, Bessent believes that the Fed does not need to reimplement large-scale asset purchases (QE). When discussing the employment report, he stated that he does not support stopping the release of employment reports but emphasized the need for reliable data. Some analysts claim that the likelihood of the Fed cutting rates by 50 basis points in September is almost zero. To achieve this, we will likely need the non-farm payroll report in September to be weak again.