Summers rebukes Bessent’s 175 bps rate cut call ahead of fed meet
Larry Summers criticized Treasury Secretary Scott Bessent for publicly calling on the Fed to slash rates by 175 bps, saying such cuts are unwarranted without a recession. He argued higher deficits, data center spending, and strong asset prices raise neutral rates. Fed futures show 84.6% odds of a 25 bps cut in September, keeping markets volatile.