U.S. Treasury Secretary Basent: The Federal Reserve may cut interest rates by 50 basis points in September, and rates should be reduced by 150-175 basis points
According to reports, U.S. Treasury Secretary Basent pointed out that the Federal Reserve's current interest rate policy is relatively tight, and there is a necessity to lower rates by 150 to 175 basis points. He believes that a series of rate cuts may begin in September, with an initial plan to cut by 50 basis points. Basent expressed optimism about the Federal Reserve's meeting in September and mentioned that if the data is accurate, the pace of rate cuts could accelerate. He also noted that corporate profit margins are gradually recovering to pre-COVID-19 normal levels.