U.S. Treasury Secretary Scott Bessent publicly advocated for a 50 basis point interest rate cut by the Federal Reserve in September 2025 during a Fox Business interview on August 12. Bessent cited revised labor data showing market underperformance and July's Consumer Price Index (CPI) indicating persistent services inflation as key catalysts for the proposed cut.
The Secretary emphasized alignment with market expectations, noting the CME FedWatch tool reflects high probability of easing. He stated: "The real thing now to think about is, should we get a 50-basis-point rate cut in September" and added "the market is pricing in substantial probability of rate cuts... and I expect the Fed will follow the market." This stance echoes broader political calls for lower rates, including from former President Trump.
Historically, such monetary easing correlates with increased dollar liquidity and improved risk-asset performance. Analysts project cryptocurrencies—particularly macro-sensitive assets like BTC and ETH—could benefit from enhanced market sentiment and capital inflows, similar to past rate-cut cycles. While the Federal Open Market Committee maintains a data-dependent approach, Bessent's advocacy has already shifted investor expectations toward dovish policy.