BlockBeats news, on August 14, U.S. Treasury Secretary Bessent stated that he is not calling for the Federal Reserve to implement a series of rate cuts, but merely pointing out that models indicate the "neutral" rate will be about 1.5 percentage points lower than it is now. Bessent stated: "I did not tell the Federal Reserve what to do." He was referring to comments made the previous day about the Federal Reserve "being able to begin a series of rate cuts."
Bessent said on Thursday: "What I mean is that to reach the neutral interest rate, it would require a reduction of about 150 basis points. If one believes in the existence of a neutral interest rate, I think there is room for a series of rate cuts, but I am not calling for rate cuts, nor have I done so; I am just saying that the model estimates the neutral interest rate is about 150 basis points lower than the current level." (Jinshi)