Treasury Secretary Bessent says more Fed rate cuts are ‘only ingredient missing’ for stronger economy

Treasury Secretary Scott Bessent on Thursday emphasized the administration’s desire to lower interest rates, saying they are key to future economic growth.

In a speech before the Economic Club of Minnesota, Bessent backed President Donald Trump’s economic agenda and said easier monetary policy would help pave the way for future gains.

“Lowering interest rates will have a tangible impact on the life of every Minnesotan,” he said, according to quotes obtained from an administration source. “This is the one missing ingredient for even stronger economic growth. That’s why the Fed shouldn’t delay.”

The Federal Reserve approved three consecutive interest rate cuts totaling 0.75 percentage points in the last four months of 2025, pushing the central bank’s key interest rate to a range of 3.5%-3.75%.

But the pace of reductions is expected to slow significantly this year, with markets pricing in just two cuts and Fed officials’ latest forecast pointing to just one cut.

One of the wildcards in this equation is that the Fed will have a new chair this year, a process that Bessent oversees. Current Chairman Jerome Powell’s term ends in May, and the Treasury Secretary has narrowed down the candidates to five. National Economic Council leader Scott Bessent and former Fed Governor Kevin Warsh are among the betting favorites for the position.

While low interest rates threaten to reignite inflation, they could also help support a slowing labor market.

“In 2025, the President laid the foundation for strong economic growth with the historic passage of the One Big Good Bill, trade agreements that rewrote decades of global discord, and an ambitious deregulation agenda that strengthens American entrepreneurs and businesses,” Bessent said. he said. “Now, in 2026, we will reap the fruits of President Trump’s America First agenda.”

Bessss will give the talk at 12:45 ET.