Bessent Pressures Fed to Cut Rates and Unleash Trump’s 2026 Growth Agenda

Treasury Secretary Scott Bessent is ramping up pressure on the Federal Reserve, calling for further interest rate cuts and framing them as the missing link in President Donald Trump’s economic vision for 2026. Speaking Thursday before the Economic Club of Minnesota, Bessent declared: “Cutting interest rates will have a tangible impact on the lives of every resident of Minnesota. It’s the one missing ingredient for even stronger economic growth. That’s why the Fed must not delay.”

Trump’s Agenda Gaining Momentum – But Fed Is Too Slow The Federal Reserve has already cut rates three times in late 2025, totaling 75 basis points. The benchmark interest rate currently stands between 3.5% and 3.75%. However, the pace of easing is expected to slow significantly this year. Markets are currently pricing in just two further cuts, while Fed officials’ own forecasts suggest there may be only one. According to Bessent, that’s not enough. He has emerged as one of the most vocal advocates of a more aggressive monetary path, enabling the Trump administration to fully implement its economic strategy centered on tax cuts, deregulation, and strong pro-growth policies.

Who Will Lead the Fed Next? Two Kevins in the Spotlight Bessent is also overseeing the search for the next Fed Chair, with Jerome Powell’s term expiring in May 2026. The shortlist has narrowed to five names, with Kevin Hassett, former White House economic adviser, and Kevin Warsh, a former Fed governor and critic of post-2008 easy money policies, considered front-runners. The decision will shape not just the direction of interest rates, but also market confidence in U.S. financial stability.

Inflation: A Risk Worth Taking? Critics argue that an overly loose policy could reignite inflation, even as the labor market shows signs of cooling. Bessent, however, maintains that the benefits outweigh the risks, particularly within the framework of Trump’s economic doctrine. “In 2025, the President laid the groundwork for robust growth: with the historic passage of the One Big Beautiful Bill, trade deals that rewrote decades of global imbalance, and a bold deregulatory agenda that empowered American entrepreneurs and businesses. Now in 2026, we’re beginning to reap the rewards of President Trump’s America First agenda.” Trump’s doctrine includes new stimulus measures, federal infrastructure projects, and efforts to revive domestic manufacturing—all dependent on continued monetary support.

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