US Treasury Secretary: "Should cut by 0.5%p in September"…Demands rate cut from Fed

Scott Besant, the US Secretary of the Treasury, has called on the Fed to implement a 0.5 percentage point interest rate cut, known as a 'big cut.'

In an interview with Fox Business on the 12th (local time), Secretary Besant cited the recent large downward revision to employment growth figures for May and June announced by the Department of Labor. He said, "If there had been the original (accurate) figures, the Fed would have cut rates in June or July, so I am confident there will be renewed discussions regarding the low quality of the data."

He added, "Therefore, what we really need to consider now is whether the Fed will cut interest rates by 0.5% in September to make up for the delay or lack of data."

Secretary Besant also described the Consumer Price Index (CPI) released that day as "fantastic," highlighting that concerns about inflation due to President Donald Trump's tariff policies are unfounded.

President Donald Trump, through the social networking service Truth Social earlier that morning, urged a rate cut and said he was considering a "major lawsuit" against Chair Jerome Powell of the Fed. With Secretary Besant's remarks, the push for a rate cut has grown stronger.

Secretary Besant also expressed hope that Steven Myron, White House National Economic Advisor recently nominated by President Trump to replace Adriana Kugler, the recently resigned former Fed Board member, would be confirmed by the US Senate.

The upcoming Federal Open Market Committee (FOMC) meeting, which decides on the Fed's rate moves, is scheduled for September 16–17. If Advisor Myron passes Senate confirmation and is appointed as a Fed Board member, prospects for a rate cut will likely gain more momentum.

Reporter Park Surim, Hankyung.com paksr365@hankyung.com