Treasury Secretary counselor says Fed rate cut is needed for the economy as worries continue about tariffs

The health of the US economy looks strong on paper, but Treasury counselor Joseph LaVorgna warns that high interest rates could become a headwind if the Fed does not act. "The US economy does need some help on the interest rate side because the 3%-plus growth is great right now, but we're not going to sustain that." Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investmentsLaVorgna, who serves as counselor to Treasury Secretary Scott Bessent, was the chief economist for the National Economic Council in the first Trump administration. The central bank reduced interest rates at its September meeting for the first time in 2025. Historically, initial Fed cuts often lead to further reductions, which could support interest-sensitive areas like housing and consumer spending, he added.