Treasury Secretary Scott Bessent said interest rates should be substantially lower than they are now, and he believes there is a good chance the Federal Reserve will start with a large cut next month.

I think we could go into a series of rate cuts here, starting with a 50 basis-point rate cut in September,” Bessent said in a television interview on Wednesday. Fed policymakers last month kept their benchmark at a target range of 4.

The current Federal Reserve interest rate is significantly higher than necessary and should be lowered, Treasury Secretary Scott Bessent said on Wednesday.