US Treasury Secretary Scott Bessent has made a strong statement on interest rate expectations following the release of US inflation data. While over 90% of financial experts anticipate a 25 basis point cut in September, Bessent pushed for a larger adjustment, calling for a potential 150-175 basis points decrease. He argues that starting with a 50 basis point cut in the next month and aiming to achieve a rate at least 1.5 basis points lower than the current one would be optimal. Bessent cited the recent decline in nonfarm payrolls data as evidence of this, adding that he anticipates a high probability for a 50 basis point cut in September. Bessent elaborated on the potential Fed chair replacement following Jerome Powell’s term ending in May, stating that over ten individuals from both the public and private sector are being evaluated, including current FED officials and individuals from the private sector. He further mentioned that Donald Trump is open to considering names like Janet Yellen and John Taylor for the position.