U.S. Treasury Secretary Scott Bessent believes the Federal Reserve (The Fed) should consider cutting its benchmark interest rate by 50 basis points next month, after holding off on such a move at its last meeting. “The question we need to think about now is whether we should cut rates by 50 basis points in September,” he said in an interview with Fox Business, as reported by Bloomberg on Wednesday (Aug 13, 2025).

Bessent pointed out that two days after The Fed kept rates steady on July 30, revised data showed that job growth in May and June was weaker than initially estimated. He suggested that if The Fed had received this revised data earlier, it might have cut rates in June or July.

His remarks came just hours after the release of the latest inflation figures, which he said proved economists wrong in predicting the impact of import tariffs. The Consumer Price Index (CPI) rose 0.2% on a monthly basis, while core inflation—excluding food and energy—was in line with expectations at 0.3%. Service inflation increased, while goods prices remained largely unchanged despite President Donald Trump’s tariff hikes. “Everyone expected goods inflation, but what we got was service inflation, which is quite odd,” Bessent remarked.

Changes at The Fed

Bessent also expressed confidence that Trump’s pick for the vacant seat on The Fed’s Board of Governors, Stephen Miran, would take office before the September 16–17 policy meeting. Miran, currently serving as Chair of the White House Council of Economic Advisers, is still awaiting Senate confirmation. He will fill a term set to expire in January 2025, though Bessent suggested that his tenure could be extended.

“He will be a great voice, and this will change the composition of The Fed,” Bessent said.

Regarding a successor for Fed Chair Jerome Powell, whose term ends in May next year, Bessent noted that Trump is keeping an open mind and will consider candidates based on three criteria: monetary policy views, regulatory policy stance, and leadership ability to reform and reshape the central bank.

He criticized The Fed for having grown too large, warning that this expansion threatens the independence of monetary policy.

Office Renovation Jab

Bessent also took a swipe at The Fed’s US$2.5 billion headquarters renovation project in Washington, which has drawn criticism from Republicans. He mentioned that he personally funded the renovation of his Treasury Department office. “I renovated my office at the Treasury and paid for it myself,” he said.

Trump had earlier criticized Powell over the renovation’s cost, along with his frustration that The Fed has yet to cut rates this year.

Powell and other Fed officials have stated they are still waiting for stronger evidence of how tariff increases are affecting inflation and inflation expectations.

Meanwhile, Bessent said he aims to wrap up the bulk of trade negotiations within the next few months. “We are in a good position. We will reach key agreements with all major countries,” he said.

He also praised the surge of investment commitments from companies and foreign governments since Trump’s return to the White House, noting that private-sector commitments have already far exceeded US$10 trillion.