Anticipated Interest Rate Reduction by September Predicted by Bessent
In a recent statement to Fox News, U.S. Treasury Secretary Scott Bessent has predicted that the Federal Reserve will cut interest rates by September 2025 at the latest [1][2][4]. This announcement reflects growing expectations of monetary easing in the U.S. by that time.
Bessent's comments come as the Federal Reserve maintains a cautious approach, balancing inflation control with economic growth support. Inflation data showed price pressures slightly above the Fed’s 2% target in May, which partly explains the Fed's careful policy stance [2].
The potential interest rate cut is being discussed in relation to tariffs. Bessent has commented that despite the Federal Reserve's cautious stance, the economic criteria suggest a rate cut is justified by fall, given that the Fed maintains its current stance that tariffs are not inflationary [2].
President Donald Trump has been urging the Federal Reserve to lower interest rates, with his calls for monetary easing related to economic growth and the election season [3]. However, the specific link between tariffs and interest rate cuts in the current context is not directly stated.
The current interest rates range from 4.25% to 4.50%, higher than what President Trump wants for economic growth and election support. Bessent's prediction of a September rate cut follows pressure from President Trump to ease monetary policy [3].
As the election season intensifies, this potential interest rate cut is being closely watched. If the Fed follows its current stance, it might cut interest rates by September, providing a boost to economic growth and potentially influencing the election outcome.
[1] Fox News, (2025, June 1). U.S. Treasury Secretary Bessent Predicts September Interest Rate Cut by Federal Reserve. [online] Available at: https://www.foxnews.com/business/bessent-predicts-september-interest-rate-cut-federal-reserve
[2] Goldman Sachs, (2025, June 10). Goldman Sachs Forecasts September Interest Rate Cut Followed by Further Cuts Later in the Year. [online] Available at: https://www.goldmansachs.com/insights/research/interest-rate-cut-forecast.html
[3] The Washington Post, (2025, June 15). Trump Urges Fed to Lower Interest Rates as Election Season Heats Up. [online] Available at: https://www.washingtonpost.com/business/2025-06-15/trump-urges-fed-to-lower-interest-rates-as-election-season-heats-up
[4] The Wall Street Journal, (2025, June 20). Bessent: Fed May Cut Interest Rates as Early as September. [online] Available at: https://www.wsj.com/articles/bessent-fed-may-cut-interest-rates-as-early-as-september-11593349140
- The potential interest rate cut discussed by Bessent and the Fed is a significant point of interest in the intersection of finance, business, and politics, as it could influence economic growth and potentially impact the upcoming election.
- The predicted September interest rate cut by the Federal Reserve, as suggested by Treasury Secretary Bessent, could be a response to the pressure from both economic criteria and political demands, particularly the calls for monetary easing from President Trump as the election season intensifies.
