Treasury Secretary Advocates for Accelerated Rate Cuts Amid Resilient Labor Market
Treasury Secretary Scott Bessent has called on the Federal Reserve to expedite interest rate cuts, framing them as the missing catalyst for robust U.S. economic growth. His remarks precede a scheduled address in Minnesota, where he emphasized the tangible benefits of lower rates for households. "Cutting interest rates will have a tangible impact on the lives of every Minnesotan," Bessent stated, dismissing delays as counterproductive.
The push comes despite resilient labor data, with jobless claims at 208,000—below expectations—and a four-week moving average at its lowest since April 2024. This strength complicates arguments for aggressive monetary easing, yet Bessent doubled down, aligning with President Trump’s growth agenda. The labor market’s steadiness, with insured unemployment unchanged, underscores the tension between policy urgency and economic fundamentals.
