Trump pressures the Federal Reserve to cut interest rates? New U.S. Treasury Secretary Becerra: We are more focused on the 10-year U.S. Treasury yield
Bessent stated that Trump did not pressure the Federal Reserve to cut interest rates, and the Trump administration was more focused on the 10-year Treasury yield in terms of lowering borrowing costs, rather than the Federal Reserve's short-term benchmark rate. Regarding Federal Reserve policy, Bessent said, "I will only talk about what they have already done, not what they should do in the future."
Local time on Wednesday, the new U.S. Treasury Secretary Scott Bessent stated in a media interview that the Trump administration is more focused on the 10-year U.S. Treasury yield for lowering borrowing costs rather than the Federal Reserve's short-term benchmark interest rate.
When asked if Trump wants to lower interest rates, Bessent said:
"President Trump and I are both focused on the 10-year U.S. Treasury, and he is not pressuring the Federal Reserve to lower rates."
Regarding Federal Reserve policy, Bessent stated:
"I will only talk about what they have already done, not what they should do in the future."
During the interview, Bessent reiterated his "3-3-3" economic policy vision: reducing the fiscal deficit from over 6% in recent years to 3% of GDP, increasing oil production by 3 million barrels per day, and maintaining a 3% economic growth rate.
Bessent emphasized that the goal of the new government team is to achieve private sector-led economic growth, driving economic development through capital expenditure and the return of manufacturing jobs.
On inflation, Bessent stated that expanding energy supply can reduce inflation, and for the working class, "energy costs are one of the most reliable indicators of long-term inflation expectations":
"If we can bring down gasoline and heating oil prices, consumers will not only save money, but their optimistic expectations for future inflation will also help them recover from the high inflation of recent years."
Additionally, in response to reports that some Republican lawmakers may consider extending the 2017 Trump tax cuts, Bessent reiterated his support for permanent tax cuts:
"President Trump came into office to do big things, and one of the big things this administration wants to do is to make the 2017 Tax Cuts and Jobs Act permanent, which will continue to make the U.S. the world's number one growing economy."