In an interview on September 24th, U.S. Treasury Secretary Scott Bessent stated that the Trump administration is inheriting a mess left by Biden's economic collapse. He also called on the Federal Reserve (Fed) to cut interest rates by at least 1% by the end of the year to alleviate the national housing crisis and improve overall home affordability. Regarding the public's curiosity about the next Fed Chair, Bessent stated that he has interviewed 11 candidates and will submit a final list to President Trump by the end of the year.
Trump took over the mess and the US economy is back on track
Bessant was the first to point out that the job growth figures during Biden's tenure were "seriously distorted." In fact, there were almost no new private sector jobs, and the official data was revised down by nearly two million jobs.
He emphasized that the Trump administration is dealing with the mess left by Biden, and the government is implementing economic policies supported by voters every day, and the U.S. economy is gradually getting back on track.
Criticizes Fed for overtightening, calls for at least a 1% rate cut before year-end
Bessant then directly criticized Fed Chairman Jerome Powell for keeping interest rates too high for too long. He believes that the current overly tight monetary policy is hurting ordinary wage earners the most while also increasing the burden of mortgage payments.
He called on the Fed to cut interest rates by at least 1% by the end of the year and expressed surprise that Powell had not sent a clear signal of a rate cut. Bessant also reminded that the job market has been weak for three consecutive months and that if interest rates are not cut quickly, it will slow economic momentum.
High housing prices deepen the housing crisis; interest rate cuts are the solution
When it comes to the housing problem in the United States, Bessant believes that the pressure on housing prices in the United States is actually more serious than official data shows, because the "estimated rent" in inflation statistics lags by about half a year before reflecting the real situation.
He predicts that prices will continue to fall, and if the Fed cuts interest rates quickly, it will immediately lower mortgage rates. This is one of the government's main goals: to use interest rate cuts to reduce the financial burden of home purchases and help more families afford homes.
The first round of interviews will be completed in early October, and the Fed candidate will be submitted to Trump before the end of the year.
Finally, speaking of the expected candidate for the Fed chairman, Bessant said he has begun interviewing 11 candidates for the Fed chairman and revealed that the performance of several of them exceeded expectations.
According to the plan, the first round of interviews will be completed in early October, followed by a second round of screening, with three to four strong candidates to be presented to President Trump by the end of the year. Despite repeated inquiries from the host regarding the list, he emphasized that he would not publicly reveal any names at this time.
The article " U.S. Treasury Secretary Bessent: Has interviewed the Fed chairman candidate, called for a 1% interest rate cut to alleviate the housing crisis" first appeared on ABMedia ABMedia .
