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Bessent Calls for Big Rate Cuts

Observant1
edited August 14 in Other Investing
"But the underlying inflation data show core CPI firmed more than expected,
climbing at an annual rate of 3.1% in July.
Perhaps more concerning, the supercore CPI (which excludes housing, energy and food costs)
posted its second-largest advance in almost 18 months, surging by 0.5%."

“'I think we could go into a series of rate cuts here, starting with a 50-basis-point rate cut in September,'
Bessent said in a television interview on Bloomberg on Wednesday.
(A basis point is a hundredth of a percentage point.)
'If you look at any model” it suggests that “we should probably be 150, 175 basis points lower.'”


I wonder which models Mr. Bessent is referring to?

https://www.msn.com/en-us/money/markets/bessent-calls-for-big-rate-cuts-futures-markets-aren-t-buying-it/ar-AA1Ksqw9

Comments

  • WABACWABAC
    Observant1 said:

    I wonder which models Mr. Bessent is referring to?

    Argumentum ad verecundiam
  • MarkMark
    edited August 14
    If you're a puppet haven't you given up whatever prestige or respectability you might have had? I'm guessing they all just figured Powell would rollover like they all did while also forgetting that he is just one vote of many.
  • Sven
    It is all about painting a narrative of a robust economy and lower rate would make it even better. Musk said about Bessent being a two time loser as a money manager, and perhaps there some truth to it.
  • yogibearbullyogibearbull
    edited August 14
    Well, Musk is something. He tried to push Lutnick for Treasury, but wasn't happy when Lutnick got Commerce, and Bessent got Treasury.

    Musk and Bessent got into shouting matches - it's reported that they came to blows within the earshot of Trump.

    When Musk schemed to get his candidate for IRS, tight under the nose of Bessent, Bessent got that IRS Commissioner fired.

    When Musk's candidate was withdrawn from NASA and the new budget excluded incentives for EVs, he just had enough and quit whatever he was doing in DC.

    I think you may want to find out what Bessent thinks of Musk, not just the other way around.
  • a2z

    for those so far unaware, MAGA believes their mandate extends to how all friendlies run their economies, even if grift is not the obvious goal :
    https://www.japantimes.co.jp/business/2025/08/14/economy/bessent-rates-japan/

    (no scam nor culture war ratings? MAGA moves on to next floodzone.)
  • DrVenture
    We appear to be observing the evolution of conditions that produce stagflation.
  • DrVenture
    Mark said:

    If you're a puppet haven't you given up whatever prestige or respectability you might have had? I'm guessing they all just figured Powell would rollover like they all did while also forgetting that he is just one vote of many.

    And one can extend this to the new FED chair. Anyone competent will know that doing political bidding/messaging can only lead to massive reputational harm. The term "scapegoat" immediately comes to mind.
  • Old_JoeOld_Joe
    @WABAC- More like Argumentum ad blennus.
  • WABACWABAC
    Old_Joe said:

    @WABAC- More like Argumentum ad blennus.

    Had to look that up.

    All I can say is baaah. :)
  • Old_JoeOld_Joe
    @WABAC- "Had to look that up." Me too.  :)
  • DrVenture
    edited August 14
    Just found out that Bessent worked for (protege of) George Soros for many years. Surprising that has not spawned any weird conspiracy theories... yet.

    His Wikipedia page is a good read.
  • Observant1
    Just wait until Laura Loomer finds out about this!
  • DrVenture
    Ahahahaha. "In 2000, Bessent hosted a fundraiser for Al Gore at his home in East Hampton, New York. That year, he also donated $1,000 to John McCain. In 2007, he donated $2,300 to Barack Obama and in 2013, he donated $25,000 to Hillary Clinton's campaign. At that time, he was described as a Democrat who supported liberal causes."
  • a2z
    MAGA\Qanon are about potentially persecuting anyone not trump nor strongly supported by trump.
    what is it called when you parrot trump regardless of past actions and facts? an initial job screen.

    image
  • DrVenture
    Interesting, I never knew that. We can compare the signature to the Epstein birthday drawing.
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