US EditionBessent Says Two-Year Treasuries Are Signaling Fed Should Cut
- US Treasury Secretary Scott Bessent indicated that the fact the two-year Treasury yield is trading below the federal funds rate suggests the Federal Reserve ought to consider lowering interest rates.
- This signal arises amid expectations of weakening payroll numbers and an economic slowdown that could influence Fed Chairman Powell's policy decisions in early May 2025.
- Market participants anticipate a below-expected payroll figure around 130,000 for April, signaling softer economic growth compared to March's strong 228,000 jobs added.
- Bessent explained on Fox Business that two-year rates at about 3.56% being lower than the fed funds rate at 4.33% reflect market expectations for rate cuts, calling this a 'market signal.'
- This dynamic suggests pressure for the Fed to reduce rates despite elevated inflation and ongoing tensions over trade policies, with the White House prioritizing lower borrowing costs for consumers.
13 Articles
13 Articles
Treasury Secretary Scott Bessent says bond yields are signaling it's time for the Fed to cut rates
Andrew Harnik/Getty ImagesTreasury Secretary Scott Bessent says the bond market is signaling a need for interest rate cuts.He's watching the two-year Treasury rate, he told Fox Business.The Trump administration has repeatedly called on the Fed to slash rates.Treasury Secretary Scott Bessent has a new argument for why the Federal Reserve should cut interest rates: Treasury bond yields.The administration has been clamoring for interest rates to co…
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Bessent Says Market’s Sending a Clear Signal: Time for Fed to Cut Rates - Wall Street Pit
Treasury Secretary Scott Bessent noted the two-year Treasury yield at 3.75% is below the Fed’s 4.25%–4.5% policy rate, signaling market expectations for rate cuts, likely starting in June. President Trump has criticized the Federal Reserve and Jerome Powell, claiming superior knowledge of interest rates while denying plans to fire Powell,…
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