U.S. Treasury Secretary Scott Bessent emphasized the importance of lower interest rates for future economic growth in a speech before the Economic Club of Minnesota.

Bessent expressed his support for President Donald Trump’s economic agenda and stated that easing monetary policy will be beneficial for the economy moving forward.

“Reducing interest rates will directly impact the lives of every individual in Minnesota,” Bessent stated. “It is the missing ingredient needed for even greater economic expansion. Therefore, the Federal Reserve should not delay in implementing rate cuts.”

While the Federal Reserve had approved three consecutive interest rate cuts towards the end of 2025, totaling 0.75 percentage points, the pace of reductions is expected to slow down this year.

One factor influencing future rate decisions is the upcoming appointment of a new Fed chair, a process overseen by Bessent. The current Chair Jerome Powell’s term is set to end in May, with Kevin Hassett and Kevin Warsh being the top contenders for the position.

Despite concerns about potential inflation, lower interest rates could help bolster a weakening labor market, according to Bessent.

Bessent highlighted the accomplishments of President Trump’s economic policies in 2025, including the passage of significant legislation, renegotiation of trade deals, and deregulation efforts that supported American businesses. He expressed optimism for continued economic growth in 2026.

The speech by Bessent is scheduled for 12:45 p.m. ET.

Correction: Kevin Hassett is the leader of the National Economic Council.