U.S. Treasury Secretary Basent recently made a striking statement in a public setting, asserting that the current interest rate levels are too tight and calling on the Fed to implement significant rate cuts. Basent indicated that the benchmark interest rate should be lowered by 150 to 175 basis points to alleviate economic pressure.

In a media interview, Besant predicted that the Fed might begin a round of interest rate cuts in the near future and specifically pointed out that a 50 basis point cut could be implemented as early as September. He emphasized that this could be the start of a series of rate cuts aimed at compensating for missed policy adjustment opportunities earlier this year. Besant also added that based on analyses from various economic models, interest rates should be lowered by at least 150 to 175 basis points. Currently, the Fed maintains the benchmark interest rate in the target range of 4.25%-4.5%.

However, the current economic situation has brought unprecedented complexity to the Fed's decision-making. Analysts warn that there is a contradiction between inflation data and employment data, which makes policy formulation more challenging. At the same time, political pressure from the White House and the struggle between hawks and doves within the Fed further complicate the decision-making process.

Regarding the candidates for the Fed chair, Bessent revealed that there could be 10-11 individuals under consideration. He also mentioned that there was once a thought of establishing a "shadow Fed chair," but he now believes there is no need for that. In addition, Bessent stated that the Fed does not currently need to re-implement a large-scale asset purchase program.

At the same time, government officials revealed that after the current Fed Chairman Powell's term expires in May this year, 11 candidates are being considered to succeed him, including three candidates who have never been publicly nominated before. This news further increases market uncertainty about the future direction of Fed policy.

In the face of such a complex economic environment and policy pressures, the Fed's next actions will be closely watched. Whether or not it adopts Bensent's recommendations, the Fed's decisions will have far-reaching impacts on global financial markets.