US Treasury's Bessent: Good chance of 50 basis point rate cut

Eren Sengezer FXStreet

In an interview with Bloomberg on Wednesday, United States (US) Treasury Secretary Scott Bessent said that there is a good chance that the Federal Reserve (Fed) could opt for a 50 basis point rate cut at the next meeting.

Key takeaways

"Think we could go into a series of rate cuts."

"A rate cut would signal an adjustment."

"Working on a big list of committee replacements, will be private sector names."

"Going to cast wide net, 10–11 people."

"No timeline for interviews."

"I don't think the Fed needs to get back into large scale asset purchase."

Market reaction

The US Dollar remains under bearish pressure following these comments. At the time of press, the USD Index was down 0.37% on the day at 97.68.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold faces rejection at $4,100 amid emergence of USD dip-buying

Gold retreats after facing rejection at $4,100 in the Asian session on Thursday as the US Dollar attracts some dip-buyers following the previous day's post-FOMC slide to a one-week low. Escalating US-Iran tensions support oil prices, fueling inflation fears and reviving the Greenback's haven demand at the expense of the bullion.

WTI falls below $83.00 despite hostilities in the Middle East

West Texas Intermediate, the US crude oil benchmark, is trading around $82.80 during the early Asian trading hours on Thursday. WTI falls amid some profit-taking despite escalating conflicts in the Middle East. Traders book some profits following the US Federal Reserve interest rate decision.

Fed review: Reversing course (?)

At face value, the FOMC's 9-3 split decision hold was exactly in line with the expectations we laid out in our Fed preview - a divided hold, 22 July. We also named the three dissenters - Hammack, Logan and Kashkari - as the most likely hawks to support rapid tightening.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.