Fed should have open mind to 'transitory nature' of supply-shock-induced inflation, Bessent says
TLT•Treasury Secretary Scott Bessent said the Fed should consider that supply shocks and the inflation they generate may be transitory. The Fed left rates unchanged but hinted that more hikes may be needed depending on inflation.
1. Bessent on inflation
Bessent said the Fed should have an open mind about the transitory nature of supply shocks and the inflation they generate. The Fed left rates unchanged and hinted that more rate hikes may be needed depending on how inflation evolves; it raised rates by a quarter percentage point last month.
2. Praise for Warsh
Asked about Fed Chair Kevin Warsh, Bessent said he was off to a great start and that he had confidence in Warsh's efforts to balance the Fed's mandates of full employment and inflation.
