U.S. Treasury Secretary Scott Bessent has signaled a strong call for the Federal Reserve to cut interest rates, citing the falling 2-year Treasury yield below the benchmark rate as a key indicator. This phenomenon, known as a yield inversion, is often seen as a predictor of economic slowdown or recession. Bessent's statement, as reported by Walter Bloomberg, underscores growing concerns about the current economic climate. A lower 2-year yield suggests investors anticipate weaker economic growth in the near term, prompting a shift towards safer, short-term investments. The Federal Reserve's decision on interest rates will be crucial in navigating potential economic headwinds. A rate cut could stimulate borrowing and investment, potentially mitigating the risk of a recession. However, the Fed must also weigh the potential impact on inflation. Bessent's remarks put increased pressure on the Fed to act decisively. ```