Scott Bessent said he expects inflation pressures to slow in the coming months, even after recent reports showed prices rising faster than expected. Speaking during meetings in China, Bessent said higher energy costs linked to the conflict involving Iran should ease as oil supply improves.
Recent data showed consumer and wholesale prices climbing sharply in April, raising concerns about inflation staying high for longer. Still, Bessent believes the recent spike is tied mainly to energy supply shocks and not a deeper long term problem. He said the United States plans to keep increasing oil production, which could help bring prices down again.
Bessent also pointed to upcoming changes at the Federal Reserve, where Kevin Warsh is set to replace Jerome Powell. He suggested the new leadership could guide the economy through the current inflation period more effectively.
While Bessent admitted there may still be a few more strong inflation reports ahead, he said he expects “substantial disinflation” afterward. He argued that today’s situation is different from the sharp inflation surge seen during the pandemic, when supply chain problems and stimulus spending pushed prices sharply higher.
Related Readings:
Source link
#Inflation #Ease #Fed #Leadership #European #Financial #Review
