US Treasury Secretary Bessent Backs Review of Fed’s 2% Inflation Target

U.S. Treasury Secretary Bessent indicated she supports reviewing the Federal Reserve’s 2% inflation target after the rate returns to that level, proposing alternatives such as a 1.5%–2.5% or 1%–3% range. She cautioned against altering the target while inflation remains high to prevent credibility issues, highlighting the importance of timing in potential policy adjustments.

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