economy

January 8, 2026

Treasury Secretary Bessent says more Fed rate cuts are 'only ingredient missing' for stronger economy

Bessent on Thursday pressed the administration's desire for lower interest rates, saying they are the key to future economic growth.

Treasury Secretary Bessent says more Fed rate cuts are 'only ingredient missing' for stronger economy

TL;DR

  • Treasury Secretary Scott Bessent believes lower interest rates are key to economic growth.
  • He urged the Federal Reserve to cut rates, citing the need for economic expansion.
  • Bessent referenced former Fed Chairman Alan Greenspan's approach during the 1990s tech boom.
  • The Federal Reserve made three rate cuts in late 2025, but fewer are expected in the current year.
  • Bessent is overseeing the selection of a new Federal Reserve chair, as Jerome Powell's term ends in May.
  • The article mentions potential candidates for Fed chair, including Kevin Hassett and Kevin Warsh.
  • Lower interest rates could help the labor market but also risk reigniting inflation.
  • Bessent credited President Trump's policies in 2025 for laying the foundation for economic growth.

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