A: Hey there! Did you catch the news today?
B: No, what's up?

A: So, Bessent from the US Treasury thinks the Fed might cut interest rates by half a point in September!
B: Whoa, really? What triggered that?

A: Well, it seems a new job market data showed a massive downward revision on the 1st of August. If they had seen this earlier, they could have decided to lower rates back in July or sooner.
B: That sounds serious. How low should the rate be now?

A: He suggested around 1.5 to 1.75 points lower. And get this, he thinks there's a good chance they'll double the usual cut at the September meeting!
B: Whoa, that's quite a jump! The Fed's kept it the same for five meetings in a row, right?

A: Yup! Current rate is between 4.25 to 4.5 percent.
B: I see... And what about our friends at BOJ? Did he mention them too?

A: Yes! He spoke with Governor Ueda and said it's his opinion, not his (Governor Ueda's), but the BOJ is behind on their curve. They need to raise rates and tackle inflation problems.
B: Hmm... I wonder what they talked about exactly.
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United States Treasury Secretary Scott Bessent says he hopes the Federal Reserve will cut its interest rate by 0.5 percentage points at its September board meeting.



Bessent made the remark Wednesday on Bloomberg TV.



He referred to the massive downward revision of job market data released on August 1.



He said if the higher quality data had been released earlier, the Fed could have decided interest rate cuts in its board meetings in July or earlier.



Bessent said the rate should probably be 1.5 to 1.75 points lower. He also said there was a very good chance of a half-point reduction at the September meeting.



That would be double the usual rate cut.



The Fed has retained the rate at five consecutive board meetings. The current benchmark interest rate remains between 4.25 to 4.5 percent.



Bessent also referred to the Bank of Japan's monetary policy.



Noting that he had spoken with BOJ Governor Ueda Kazuo, Bessent said, it's "my opinion, not his. They're behind the curve. So they're going to be hiking, and they need to get their inflation problem under control."



Bessent didn't mention when he had spoken with Ueda or the details of their conversation.
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Quiz 1:
Why did Scott Bessent suggest a potential interest rate cut by the Federal Reserve?
A. To combat high inflation
B. Due to the massive downward revision of job market data released on August 1
C. As a response to the Bank of Japan's monetary policy
D. Because of the Fed's failure to control their own inflation problem

[Answer block]
Answers: Quiz 1: B

Quiz 2:
What was Scott Bessent's opinion about the Bank of Japan's monetary policy?
A. They are ahead of the curve and don't need to raise rates
B. They are behind the curve and need to hike rates
C. They have control over their inflation problem
D. They need to lower interest rates

[Answer block]
Answers: Quiz 2: B

Quiz 3:
What was the current benchmark interest rate of the Federal Reserve according to the article?
A. 0.5 to 0.75 percent
B. 1.5 to 1.75 points lower than what Bessent suggested
C. Between 4.25 to 4.5 percent
D. 5 percent or higher

[Answer block]
Answers: Quiz 3: C