Bessent was speaking in an interview with Fox:
- says ‘a little bewildering’ that tariffs wouldn’t push Fed towards a cut
- Asked if he thinks Powell will lower rates by fall, Bessent: I think they could do it sooner than then but certainly by September
It’s a bit tough to figure out what Bessent is doing here. He is, according to Musk, a failed hedge fund manager so its always possible that he really doesn’t understand tariff impacts on inflation, but I suspect he is parroting Trump-approved b/s instead.
Anyway, the probability of a September Federal Open Market Committee (FOMC) rate cut is on the up.
This article was written by Eamonn Sheridan at www.forexlive.com.