U.S. Treasury Secretary: "Fed inflation target should be reconsidered as a range"

On the 23rd (local time), according to overseas economic news channel Walter Bloomberg, U.S. Treasury Secretary Scott Bessent said the Federal Reserve (Fed)'s price stability goal needs to be reconsidered as a range-based target rather than the existing single 2% target.

Secretary Bessent noted that as inflation gradually stabilizes downward toward the 2% level, the monetary policy framework could also be adjusted. He proposed setting the inflation target in a range of 1.52.5% or 13%.

In recent remarks, Secretary Bessent said, "If inflation expectations become stably anchored again, the Fed should consider a range-based target rather than a fixed figure." He assessed that it is time for the Fed to reexamine its policy framework amid the downward trend in inflation.

Furthermore, Secretary Bessent noted that American households have borne a significant burden from high prices in recent years. He emphasized that "public dissatisfaction over rising living costs is evident," and that price stability remains a central policy task.

The Fed currently maintains a 2% inflation rate as its medium- to long-term goal, and that target is used as a key criterion for monetary policy decisions. However, introducing a range-based target has attracted market interest because it could increase policy flexibility going forward.

Secretary Bessent's remarks suggest that discussions about the Fed's policy operation methods and target setting could intensify after the inflation stabilization phase.