Scott Bessent Calls for More Fed Rate Cuts in 2026 as Miran Backs 150 bps Cut

U.S. Treasury Secretary Scott Bessent has called on the U.S. central bank to make more Fed rate cuts this year. This comes as Fed Governor Stephen Miran stated that he is looking at up to 150 basis points (bps) of cuts this year.

Scott Bessent Pushes For More Fed Rate Cuts This Year

According to a CNBC report, the Treasury secretary said that lower interest rates are key to future economic growth. He also backed U.S. President Donald Trump’s economic agenda while stating that an easier monetary policy would help pave the way for gains ahead.

Furthermore, Bessent described more Fed rate cuts as the “only ingredient missing for even stronger economic growth.” Therefore, he urged the Fed not to delay in lowering rates.

The Treasury Secretary’s comments come at a time when the Fed is expected to hold off on lowering interest rates after making three consecutive cuts last year. As CoinGape reported, crypto traders are currently betting that the Fed will make only two rate cuts this year.

Polymarket data shows a 27% chance that the committee will only lower rates by 25 basis points twice this year. Furthermore, there is a 23% chance of three cuts and only a 17% chance of four cuts.

Meanwhile, the December FOMC minutes showed that some Fed officials support holding rates for some time, given the current economic outlook. The latest projection from these Fed officials is that they will make only one cut this year. However, officials such as Chicago Fed president Austan Goolsbee have said that they will likely make more cuts than the median projection.

The number of Fed rate cuts this year could largely depend on the incoming Fed chair, with Jerome Powell’s term set to end in May. Trump has already stated that whoever he nominates to replace Powell must immediately lower rates. NEC Director Kevin Hassett, who is the current favorite to replace Powell, has said there is still room to make further cuts.

Stephen Miran Advocates For 150 Bps Cuts

Fed Governor Stephen Miran said in an interview on Bloomberg TV that he wants 150 basis points of cuts this year to boost the labor market. Miran has continued to focus on the labor market, which he believes should be the main priority, as he doesn’t expect inflation to reaccelerate.

During the interview, he noted that underlying inflation is running at 2.3%, which is close to the Fed’s 2% target. The Fed governor also said they could add millions of jobs without causing inflation, which is why he supports larger Fed rate cuts.

It is worth mentioning that the Fed governor’s term expires at the end of the month, with the January FOMC meeting likely to be the last time he directly influences monetary policy. Miran said that he doesn’t know anything about his future at the Fed.

However, Trump is expected to nominate the next Fed chair who will take over Miran’s seat on the board. Polymarket data shows an 80% chance that Trump announces the Fed chair nominee by January 31.