Scott Bessent Critiques Fed’s Rate Decision Approach

• Lyla Velez
• September 24, 2025
• Policy
• 0 Comments

Scott Bessent has criticized Jerome Powell and the Federal Reserve for their approach toward imminent rate cuts by the end of the year. His remarks spotlight a possible reduction of 150 basis points.

The event is significant due to potential monetary policy shifts impacting the financial market, with uncertain ramifications for risk assets including cryptocurrencies such as BTC and ETH.

Scott Bessent asserts the Federal Reserve under Jerome Powell should be pursuing more aggressive rate cuts. Current policy decisions may not align with market demands. The discourse arises as Bessent highlights potential drawbacks if prompt actions are not initiated.

Jerome Powell has pointed out the Fed’s rationale for cautious rate cuts, emphasizing inflation control and labor market stability. These factors influence the decision not to cut rates prematurely, risking possible future economic challenges.

“If we’d seen those [higher quality] numbers in May, in June, I suspect we could have had rate cuts in June and July… There’s a very good chance of a 50 basis point rate cut. And I think President Trump is very good at giving these nicknames. And I think the reason that Jay Powell gets the nickname too late is because he wants to go into a series of rate hikes. He’s not willing—he’s not Alan Greenspan, who was very forward-thinking… We should probably be 150, 175 basis points lower. So, you know, I think the committee needs to step back.” — Scott Bessent

Bessent’s assertions reflect broader market anticipation for significant monetary policy changes that could impact cryptocurrencies and equity markets. Historically, aggressive rate cuts have spurred increased risk-on sentiment across asset classes.

A more drastic rate cut could lead to increased liquidity in markets, potentially bolstering both cryptocurrency valuations and DeFi protocols. The past has shown that risk assets generally benefit from such monetary easing.

Insights suggest that should a significant rate cut occur, the cryptocurrency market may see heightened activity. Historical patterns indicate BTC, ETH, and other digital assets could rally, reflecting broader economic sentiment.