U.S. Treasury Secretary Scott Bessent has publicly advocated for the Federal Reserve to consider a 50 basis point interest rate cut at its September 16-17 meeting. He emphasized that the Fed missed an opportunity to reduce rates earlier, specifically in June, due to inaccurate data at the time. Bessent pointed to recent revised labor market data showing weaker job growth and soft inflation as key factors supporting the need for rate easing. He further stated that the current interest rates are too restrictive and suggested that the Fed's benchmark rate should be lowered by 150 to 175 basis points overall. Bessent indicated that the rate cuts could begin with a 50 basis point reduction in September and potentially continue as a series of cuts to provide stronger economic support amid slowing growth and weakening labor market conditions. His comments have been widely reported and have influenced market expectations, with traders pricing in a rate cut. Bessent also expressed hope for the confirmation of a Fed governor seat before September and noted that former President Donald Trump remains open-minded on the Fed governor pick.