Bessent Sees 'Substantial Disinflation' as Warsh Takes Fed
US Treasury Secretary Scott Bessent said he expects 'substantial disinflation' once Kevin Warsh takes over the Federal Reserve. Bessent argued the interest-rate path should normalise and ease pressure on housing and capital spending. Treasury yields moved only modestly after the comments.
In comments to CNBC, US Treasury Secretary Scott Bessent said he expects a 'substantial' easing in inflation once Kevin Warsh takes over as Federal Reserve chair. Bessent argued that current high rates are containing price pressures but the housing market and capital spending now need relief.
Bessent added that softer domestic demand should pull core inflation lower despite swings in energy prices. He said the administration respects the Fed's independence but believes monetary policy needs to align more closely with economic reality.
Market reaction was muted. Treasury yields edged lower while rate-sensitive sectors and big tech ticked up. Investors will watch closely for Warsh's first Federal Open Market Committee meeting and any shift in the central bank's communications under his leadership.
More from North America
Trump Says China Will Order 200 Boeing Jets
President Trump told Fox News that China will buy 200 jets from Boeing as part of agreements reached at the Beijing summit. The deal would be one of the largest single orders for the US planemaker in years. Boeing shares slipped in early trading as investors awaited contract specifics.
UBS Lifts Nvidia Price Target, Sees Strong Earnings Report Ahead
Swiss investment bank UBS raised its price target on AI-chip leader Nvidia and said it expects strong figures from the company in the upcoming earnings cycle. Analysts pointed to continued momentum in data-centre orders. The move follows fresh record highs for Nvidia shares.
GameStop makes $55.5bn takeover offer for eBay
GameStop CEO Ryan Cohen announced a $55.5 billion takeover offer for eBay, seeing potential to make it a much bigger rival to Amazon.