On the 13th, US Treasury Secretary Baycent indicated that the Federal Reserve might implement a series of rate cuts in the coming months, starting with a 50 basis point cut in September.
In an interview with Bloomberg TV, he said: "The likelihood of a 50 basis point rate cut is very high... we could be starting a series of rate cuts from now, beginning with a 50 basis point cut in September."
He stated that current interest rates are "overly restrictive" and should probably be 150 to 175 basis points lower than the present level.
He pointed out that, regardless of the model, rates "should be lower by 150 or 175 basis points."
Since the beginning of this year, the Federal Reserve has kept the federal funds rate target range unchanged at between 4.25% and 4.50%.
If US–Russia Talks Go Poorly, Russian Sanctions Will Intensify
In addition, Baycent noted that if the meeting between President Trump and Russian President Putin does not go smoothly, the US may step up sanctions against Russia or impose secondary tariffs.
He stated that Trump will make it clear to Putin that the US could make various choices: it may tighten sanctions against Russia, relax them, or extend sanctions indefinitely.
Baycent also called on Europe to join in sanctioning Russia: "Europe needs to agree to impose secondary sanctions on Russia."