U.S. Treasury Secretary Scott Bessent publicly criticized Federal Reserve Chair Jerome Powell for failing to signal substantial interest rate cuts, specifically calling for a reduction of 100 to 150 basis points by the end of the year. Bessent expressed surprise during an interview on Fox Business Network's "Mornings with Maria," stating that Powell's recent speech lacked clarity on monetary policy direction.
He emphasized, "It's surprising that Powell didn't clearly state the direction of interest rates... Powell should have signaled a 100-150 basis point cut." Bessent argued that the Fed has maintained excessively high rates for too long, describing them as very restrictive and necessitating a return to neutral levels to support economic conditions.
The critique underscores a policy divide, with historical data indicating that such monetary easing could increase dollar liquidity, potentially driving inflows into risk assets like cryptocurrencies. Bessent also mentioned ongoing meetings with potential Fed chair candidates, aiming to conclude initial discussions by early October, though this aspect has less direct crypto relevance.