US Treasury Secretary Bessent urged the Federal Reserve to focus on future economic conditions rather than overreacting to a temporary energy supply shock, warning that excessive rate hikes would be inappropriate as the disruption is about to fade. He emphasized that markets remain resilient, with four of the strongest bond auctions in 20 years held recently and vigorous dollar buying observed.
Bessent expressed confidence in the US economy, stating it is in very good shape with no alarm signals. He noted that falling gasoline prices could lead to moderate data readings next week and argued the Fed should not pivot its policy stance solely because of the energy supply shock, advocating for an open-minded approach to monetary policy decisions.
Treasury Secretary Bessent: Fed Should Not Over-Hike Rates as Energy Supply Shock Fades
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