US Treasury Secretary Bessent Reveals His Expectation for Today’s FED Interest Rate Decision

As the Fed prepares to announce its interest rate decision this evening, it finds itself under historically intense political pressure.

US Treasury Secretary Scott Bessent, speaking ahead of the meeting, said the Fed was not expected to cut interest rates today. He also said the Fed needed to “show some imagination” and reiterated that it had made mistakes regarding inflation, particularly regarding tariffs.

Bessent also offered important messages regarding trade talks in his remarks. He stated that if an agreement isn’t reached by August 1st, negotiations could continue beyond that date. “I urge people not to panic before August 1st,” Bessent said, adding that they expect August to be a busy month and that the trade deal hasn’t yet been finalized. The Treasury Secretary also described former President Donald Trump’s policies as “incredible,” noting that the US economy has regained confidence and regained momentum.

Since the last meeting in June, Trump and his team have increased pressure on the Fed to cut interest rates. Cost overruns, particularly those related to the Fed building renovation project, have become a primary focus of criticism from Trump’s team against the central bank. Although Trump has stated that he will not fire Fed Chair Jerome Powell, Powell’s position could be in jeopardy. In the shadow of the renewal discussions, Powell’s messages tonight will be critical for both the markets and the Fed’s independence.

*This is not investment advice.