The bond market is sending a signal that the Federal Reserve should be cutting interest rates, U.S. Treasury Secretary Scott Bessent said on Thursday, noting that yields on 2-year Treasury notes were lower than central bank's policy rate.

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.

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