US Bessent: There’s good chance of 50 basis point rate cut for the Fed | investingLive

• We should be 150-175 bps lower on Fed’s rate now.
• If data has been accurate, possible the Fed would have cut earlier.
• I think we could go into a series of rate cuts.
• Rate cut would signal an adjustment.
• On Fed Chair names: goint to cast a wide net of 10-11 people.
• Would not support halting jobs reports.
• What we want is good data.
• I called for a shadow Fed Chair, but I don’t think so now.
• On 30 year bonds: we are committed to keeping inflation expectations low.
• Yields show there is credibility.
• Don’t think the Fed needs to go back into large scale asset purchase (QE).

At the moment, there’s absolutely no chance the Fed cuts by 50 bps in September, like zero. For that to happen, we would likely need another soft NFP report in September.

The comments about long term yields shows that there is some focus and acknowledgement that inflation expectations have been playing a role in the rise. In fact, despite the media talking about debt fears and so on, long term yields have been moving up on inflation worries.