🚨 Is the Fed Ready for a Bigger September Move?

🏛 According to Bloomberg, Scott Bessent believes the Federal Reserve should seriously consider a 50 bps rate cut in September — a more aggressive step than markets currently expect.

🔍 Why the bold call?

⦿ Soft Inflation Data: July CPI rose just 0.2% MoM, with core inflation at 0.3%, suggesting room for a looser policy stance.

⦿ Goods Prices Resilient: Despite recent tariff hikes, goods inflation remains tame.

⦿ Policy Window: Bessent argues the Fed skipped action at the last meeting but now has “incredible” data to justify a decisive cut.

📢 He also noted that Stephen Miran, Trump’s nominee for the Fed board, could be confirmed before the September 16–17 meeting — potentially influencing the policy decision.

🗣 Beyond rates, Bessent emphasized the need for the next Fed chair (Powell’s term ends in May) to have:

1️⃣ Strong, clear views on monetary policy

2️⃣ A defined regulatory approach

3️⃣ The ability to manage & reform a “bloated” Fed without risking its independence

💡 With market volatility rising and political shifts on the horizon, September’s Fed meeting might be more consequential than many expect.

#FederalReserve #InterestRates #MonetaryPolicy #Economy #Inflation

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