US Treasury Secretary Scott Bessent called on the Federal Reserve to cut interest rates. Bessent told Bloomberg that the benchmark should be at least 1.5% lower than its current level of 4.25% to 4.5%.
President Donald Trump has also repeatedly called for lower rates, but economists are increasingly worried that US inflation is gathering pace, driven by high tariffs, and that high rates are needed to cool it down.
One Brookings analyst said that although this week’s overall consumer price index figures looked mild, increases can be seen in key categories, and a Goldman Sachs analysis said tariffs were putting new costs onto consumers. Trump dismissed the concerns, saying Goldman’s CEO should “get himself a new Economist.”