Treasury Secretary Urges Fed Rate Cuts, Impact Expected on Crypto

U.S. Treasury Secretary Scott Bessent called for lower Federal Reserve interest rates on May 1, 2025, arguing that two-year yields below the federal funds rate suggest a potentially overtight monetary policy. This statement highlights a clash between Treasury goals and Fed autonomy, signaling an administration push for more affordable borrowing costs. The current administration views the inverted yield curve, often seen as a signal of tight monetary policy, as a reason to consider adjusting rates.