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| US Bonds Review |
US Treasury bond’s overall trend, revealed by trends of price, leverage, and time, are defined in The Matrix for subscribers.
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Politicizing The Fed
U.S. Treasury Secretary Scott Bessent has called on the Federal Reserve to slash interest rates by 100 to 150 basis points, arguing that the current federal funds rate is overly restrictive and has remained too high for too long. Citing recent downward revisions to employment data, Bessent said the economic signals warrant immediate action. In an interview with Fox Business, he expressed surprise that Fed Chair Jerome Powell hasn’t yet indicated plans for rate cuts by the end of the year.
His comments follow Powell’s statement on Tuesday that all policy tools remain on the table amid rising risks to both employment and price stability. Meanwhile, newly appointed Fed Governor Stephen Miran—an ally of former President Trump—echoed Bessent’s view, suggesting the rate is roughly two percentage points too high and projecting a target range of 2.75% to 3.00% by year-end.
Bessent welcomed Miran’s addition to the Fed, criticizing what he described as the institution’s past rigidity. He also revealed he is currently interviewing 11 candidates for the next Fed chair, with a shortlist of three or four expected to be presented to President Trump after October.
However, not all Fed officials share Bessent’s sense of urgency. While Governor Michelle Bowman has begun emphasizing employment risks, she has not endorsed aggressive cuts. Other officials, including Alberto Musalem and Raphael Bostic, remain cautious, pointing to inflation that continues to run above the Fed’s 2% target.
Bessent, however, argued that rate relief is critical to easing financial pressure on working Americans. He downplayed concerns about a possible recession, saying the broader focus should be on the distributional impacts of high interest rates.
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