US Treasury Secretary Expects Inflation to Move Closer to Fed’s 2% Target

Treasury Secretary Bessent voiced confidence in continued inflation decline toward the Federal Reserve’s goal, while cautioning that the ongoing government shutdown is harming economic strength.

Summary

US Treasury Secretary Bessent stated his belief that inflation will keep falling toward the Federal Reserve’s 2% target, reinforcing expectations of price stability. However, he warned that the prolonged government shutdown is beginning to weaken the US economy, potentially affecting growth and stability.

Terms & Concepts
  • Federal Reserve 2% Inflation Target: A long-term price stability goal set by the US central bank, aiming to maintain annual inflation at around 2%.
  • Inflation: The rate at which the general level of prices for goods and services is rising, eroding purchasing power.
  • Government Shutdown: A closure of non-essential federal operations due to the failure of Congress to approve funding, which can negatively impact the economy.