On September 24, U.S. Treasury Secretary Basant suddenly stated that Fed Chairman Powell should have signaled a rate cut of 100 to 150 basis points! As soon as this news broke, the market reacted as if a bomb had been dropped, causing a splash.

The most unusual aspect of this matter is that the U.S. Treasury Secretary and the Fed Chair have always pretended to be polite even when they are not in agreement; how could one directly point a finger and urge a rate cut?
It is important to know that Besant is not an ordinary politician; this former Chief Investment Officer of the Soros Fund is a "trusted ally" promoted by Trump, and his words conceal more than just economic proposals.
What does 100 to 150 basis points mean? It corresponds to a drastic measure that would have been used only in the past if the economy had collapsed, involving four to five rate cuts within six months. However, the core inflation in the U.S. is still at 2.9%, which is still a distance from the Fed's target of 2%. Powell just said last week, "We need to balance inflation and employment risks," and then he was put on the spot by Bessent...
#降息 Bescent #鲍威尔 Fed