The likelihood of a 50 basis point Fed rate cut increases, with a possible start in September

According to ChainCatcher, citing Jinshi News, U.S. Treasury Secretary Bessent stated in an interview that the Federal Reserve’s interest rates should be 150-175 basis points lower than current levels, and believes there is a strong possibility of a 50 basis point rate cut, potentially starting in September. He also mentioned that the Fed does not need to reintroduce large-scale asset purchases (QE), and emphasized the need for reliable employment data. Analysts pointed out that the likelihood of the Fed cutting rates by 50 basis points in September is nearly zero and will depend on the performance of the nonfarm payroll report.