United States Treasury Secretary Scott Bessent said on Wednesday that the Federal Reserve has kept interest rates “too high for too long”, stressing that the US economy needs immediate relief.
Speaking to Fox News, Bessent noted that the Fed should reduce rates “at least to neutral” and criticised Chair Jerome Powell for not signalling more aggressive cuts. He suggested that the central bank should move toward 100–150 basis points of additional easing in the months ahead.
Bessent described monetary policy as entering an easing cycle, saying he was now “less concerned” about the possibility of a recession given the recent cooling in inflation. He also predicted a “substantial drop” in inflation, which could provide the Fed more space to loosen its policy stance.
On Powell’s upcoming succession, Bessent said he expects to finish the first round of candidate interviews by the first week of October, adding that he is looking for someone who is “open-minded and future-focused” to lead the Fed next.
The comments come amid heightened debate over how quickly the Federal Reserve should pivot from its prolonged tightening cycle, which has weighed on growth but helped temper price pressures.
