U.S. Treasury Secretary Bessent Reveals Expected Interest Rate Cuts This Year

Finance Minister Bessent stated that there may be one or two interest rate cuts this year. He also mentioned that he has breakfast with Fed Chairman Jerome Powell almost every week.
Meanwhile, it should be noted that President Donald Trump pressured Powell to cut interest rates last month, citing rising federal debt costs. However, according to an analysis by chief economist Matthew Luzzetti at Deutsche Bank and his team, firing Powell and forcing a rate cut will not have the expected impact on debt costs.
Trump argued that cutting interest rates by 3% would save $1 trillion. However, according to calculations by Deutsche Bank, this move would lower short-term Treasury bond yields but push long-term bond yields higher, as the market fears that a Fed adhering to tighter policies would fuel inflation. Accordingly, firing Powell would only help the Treasury save between $12 billion to $15 billion by 2027.