Bessent Urges Half-Point September Interest-Rate Cut, Targets at Least 1.5 Percent Total Easing

The Treasury chief says recent inflation data and signs of labor market cooling justify a jumbo rate cut in September—followed by series of more reductions.

U.S. Treasury Secretary Scott Bessent attends a press conference at government quarters Rosenbad after the trade talks between the U.S. and China concluded, in Stockholm, Sweden, July 29, 2025. Magnus Lejhall/TT News Agency/via Reuters

Treasury Secretary Scott Bessent is urging the Federal Reserve to slash interest rates by half a percentage point at its September policy meeting of the Federal Open Market Committee (FOMC), and follow up with a series of reductions to bring borrowing costs down by at least 150 basis points.

Bessent told Fox News on Aug. 12 that “fantastic” consumer price data and sharply weaker labor market figures support an aggressive move by Fed officials to cut rates.