Treasury Secretary Bessent: Fed should look at 50 bps cut in September

US Treasury Secretary Scott Bessent gave an interview with Fox Business late Tuesday, touching on various policy topics both at home and abroad. According to Bessent, the US Supreme Court will be swayed on tariff rulings based on how much estimated government revenue they generate, that US President Donald Trump and Chinese President Xi Xinping share a "good relationship", and that the Federal Reserve (Fed) should think about delivering a double interest rate cut on September 17.

Key highlights

The Fed should think about a 50 basis point cut in interest rates in September.
Fed could have cut in June if given accurate data.
Trump has an open mind on Fed chair pick.
We want to find someone who can revamp the Fed.
There's a foundational issue at the Fed.

India has been a bit recalcitrant in trade negotiationsWe are solving for several variables with China.Trump has an excellent relationship with China’s President Xi.We will meet again with Chinese officials in next two or three months.We will need to see months, if not a year, of progress on fentanyl flows before Chinese tariffs come down.

I will immediately enjoin if court rules against tariffs.It gets harder and harder for the Supreme Court to rule against the Trump Administration on tariffs given the revenues coming in.