US Treasury Secretary Scott Bessent on Thursday clarified that he is not urging the Federal Reserve to embark on a sweeping round of interest-rate cuts, after earlier remarks were interpreted as advocating a reduction of up to 150–175 basis points. Bessent told Fox Business that economic models, including versions of the Taylor rule, imply the policy rate’s neutral level is roughly 1.5 percentage points below the current federal-funds rate, but said he was merely describing the models rather than prescribing Fed action. Bessent added that the US central bank could “start with” a 25-basis-point reduction and accelerate if conditions warrant, stressing he is “not calling for a series” of cuts. The comments came as short-dated Treasury yields slipped to their lowest levels in more than three months: the two-year note traded near 3.67% and the 10-year yield hovered around 4.22%, reflecting growing expectations that the Fed will begin easing policy as soon as its September meeting.