August 13, 2025
United States:
Bessent Urges Fed to Lower Rates by 150 Basis Points or More
US Treasury Secretary Scott Bessent made his most explicit call yet for the Federal Reserve to execute a cycle of interest-rate cuts, suggesting the central bank’s benchmark ought to be at least 1.5 percentage points lower than it is now.
“I think we could go into a series of rate cuts here, starting with a 50 basis point rate cut in September,” Bessent said in a television interview on Bloomberg Surveillance Wednesday. “If you look at any model” it suggests that “we should probably be 150, 175 basis points lower.”
Europe:
Average UK Mortgage Rate Is Below 5% for First Time Since Truss
The average interest rate on a common UK mortgage has dropped below 5% for the first time since former prime minister Liz Truss’ calamitous mini-budget in 2022.
Data from Moneyfacts, a website comparing financial products, showed Wednesday that the average rate on a two-year fixed deal for homeowners had dipped to 4.99%. The rate was last below 5% on Sept. 29, 2022, before Truss’ announcement of £45 billion ($61 billion) of unfunded tax cuts sent borrowing costs spiralling.
Asia:
Japan Bond Auction Spotlights Fragile Demand And Rate Hike Fears
Japan’s five-year government bond auction saw the lowest demand since 2020 amid the prospect of tighter monetary policy and renewed concerns over poor market liquidity.
The sale nudged bond prices lower across maturities from two- to 20-years, and yields on five-year securities rose as much as 3 basis points to 1.07% before easing slightly.
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