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

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

Bessent suggests evaluating a broader inflation range once 2% is reached, stressing that changes during high inflation could undermine policy credibility.

Fact Check
The evidence strongly and consistently supports both components of the statement. First, the identity of the individual is confirmed by the highest authority sources. The official U.S. Department of the Treasury website and its associated press releases (Sources 2, 5, 6, 7, 8) repeatedly identify Scott Bessent as the Secretary of the Treasury. This part of the statement is factually verified.Second, the claim about his policy stance is corroborated by multiple, independent, and reputable financial news sources. Bloomberg, Investing.com, Yahoo Finance, and InvestingLive.com (Sources 1, 3, 4, 9) all report that Secretary Bessent supports a future review or reconsideration of the Federal Reserve's 2% inflation target. The high authority and direct relevance of these sources lend significant weight to this claim. There is no conflicting evidence among the provided sources. The official Treasury documents that do not mention the inflation target are simply on different topics and do not contradict the reporting from the news outlets. The consistency across multiple journalistic sources makes it highly probable that these reports accurately reflect Secretary Bessent's stated position.
Summary

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.

Terms & Concepts
  • Federal Reserve: The central banking system of the United States, responsible for monetary policy, financial stability, and regulation of banks.
  • Inflation Target: A specified rate of inflation that a central bank aims to maintain over time to ensure price stability and economic growth.