The Treasury Secretary pointed to two-year Treasury yields as a signal that the market is ready for interest rate cuts from the Fed.

U.S. Treasury Secretary Scott Bessent on Thursday said the market was sending a signal that the Federal Reserve ought to lower interest rates. "We are seeing that two-year rates are now below fed funds rates.

Treasury Secretary Scott Bessent hinted the Federal Reserve ought to consider cutting rates by pointing to how shorter-dated Treasury yields, which are sensitive to monetary-policy expectations, have moved steadily lower in recent weeks.