The US Treasury Secretary confirmed he did not instruct the Federal Reserve to cut rates, noting that a 150 basis point reduction is required to achieve a neutral rate despite model projections.
The US Treasury Secretary clarified that he did not direct the Federal Reserve to initiate rate cuts, even though models indicate that the neutral rate is about 1.5 percentage points below current levels. He emphasized that achieving a neutral rate would require a 150 basis point reduction, underscoring that no such measures were called for.