Recently, U.S. Treasury Secretary Basent made a series of striking economic predictions. He emphasized that the current interest rate policy in the United States is too stringent and needs significant adjustment. According to Basent, the interest rate should be lowered by 150 to 175 basis points to alleviate economic pressure.

Bessent specifically pointed out that the Federal Reserve may start a rate cut cycle in September this year, expecting the first rate cut to reach 50 basis points. This prediction has attracted widespread attention from the financial markets. Bessent stated that he is optimistic about the Federal Reserve's policy meeting in September and hinted that if economic data supports it, the Federal Reserve may accelerate the pace of interest rate cuts.

It is worth noting that Besant also mentioned the positive changes in corporate profit margins. He observed that the profitability of many companies is gradually returning to pre-pandemic levels, which may be one of the factors prompting policymakers to consider adjusting monetary policy.

Bessent's remarks reflect the judgment of American policymakers on the economic outlook, while also hinting at possible directions for future monetary policy. However, the specific implementation of policies will still need to wait for the Federal Reserve's formal decision.