US Treasury’s Bessent Sees One or Two Fed Rate Cuts in 2025

U.S. Treasury official Bessent said he expects the Federal Reserve to lower its benchmark interest rate one or two times in 2025. The remarks, made on 23 July, add to market speculation about the central bank’s policy path after a prolonged period of elevated borrowing costs meant to curb inflation. Bessent also disclosed that he meets Fed Chair Jerome Powell for breakfast almost every week, suggesting an unusually close channel of communication between the Treasury Department and the central bank’s top policymaker. Neither the Treasury nor the Fed immediately responded to requests for comment on Bessent’s forecast or the nature of the meetings.