Why a jumbo Fed rate cut in September would ‘come across as panicky’

Published: Aug. 13, 2025 at 4:26 p.m. ET

Investors have begun to see the possibility of the Federal Reserve delivering a jumbo rate cut in September of 50 basis points — just like the one delivered almost a year ago.

Helping nudge that view along was July’s ugly jobs report, as well as comments Wednesday from Treasury Secretary Scott Bessent, who said he sees a “very good chance” the Fed will opt for a rate cut of 50 basis points in September, during a Bloomberg TV interview.