U.S. Treasury Secretary Pushes for 50 Basis Point Fed Rate Cut in September

U.S. Treasury Secretary Scott Bessent has called for a 50 basis point rate cut by the Federal Reserve at its upcoming September meeting, a position he made public on August 11, 2025 [1]. This advocacy follows recent economic data showing softened inflation and growing pressure from President Donald Trump, who has also pushed for lower interest rates to boost economic growth [1]. Bessent’s stance reflects a broader policy shift, with Fed Governor Michelle Bowman having previously called for multiple rate cuts by the end of 2025 due to a weakening labor market [2].

The Treasury Secretary emphasized that a 50 basis point rate cut could correct for earlier delays in adjusting monetary policy to the current economic landscape [1]. His comments suggest that the Federal Reserve may soon move from a neutral stance toward a more accommodative one, aligning with market expectations. Wall Street traders have increasingly priced in a rate cut, with Fed funds futures now indicating a 94% probability of a move at the September 16–17 meeting, up from 86% earlier in the week [3]. This shift in market sentiment is supported by mild inflation data, which has been interpreted as a green light for policy easing [4].

President Trump has further amplified the pressure on the Fed, publicly threatening legal action if the central bank does not act on what he considers an urgent need for stimulus [5]. While the Fed has maintained its data-dependent approach, the growing consensus among policymakers and market participants suggests that a rate cut is increasingly likely.

The potential for a rate cut has also sparked speculation about its impact on asset markets, particularly in the cryptocurrency sector. Although the Fed has not explicitly linked its decision to specific markets, analysts note that lower interest rates could improve liquidity and risk appetite, potentially benefiting macro-sensitive assets like BTC and ETH [6]. This underscores the broad influence of Federal Reserve decisions on a wide range of financial instruments.

While no official decision has yet been made by the Federal Open Market Committee, the buildup of economic, political, and market forces points to a possible September rate cut. Whether the Fed acts as widely anticipated remains to be seen, but the growing alignment of views among policymakers and investors indicates that a policy shift may be imminent.

---

Source:

[1] Bessent Urges Fed to Consider 50 Basis Point Rate Cut in ... (https://finance.yahoo.com/news/bessent-urges-fed-consider-50-205705345.html)

[2] Fed Governor Calls for Multiple Interest Rate Cuts (https://www.thestreet.com/fed/fed-governor-calls-for-multiple-interest-rate-cuts)

[3] TREASURIES-Two-Year Yields Fall After Consumer Price ... (https://fixedincome.fidelity.com/ftgw/fi/FINewsArticle?id=202508120928RTRSNEWSCOMBINED_L1N3U40FG_1)

[4] Investors Double Down on September Fed Cut After CPI (https://www.theglobeandmail.com/investing/article-investors-double-down-on-september-fed-cut-after-cpi/)

[5] Trump Again Calls for Rate Cuts, Threatens Powell with Lawsuit (https://www.investing.com/news/economy-news/trump-again-calls-for-rate-cuts-mulls-allowing-lawsuit-against-powell-4185373)

[6] Trump Urges Fed Rate Cut Following Inflation Report (https://m.fastbull.com/news-detail/trump-urges-fed-rate-cut-following-inflation-report-4339358_0)