Bessent Says Supply Shocks Typically Don’t Lead to Rate Hikes, Calls Core Inflation Moderate

U.S. Treasury Secretary Scott Bessent said interest rates are typically not raised in response to supply-side shocks.

Odaily, a cryptocurrency-focused media outlet, reported on August 31 that Bessent said, “Traditionally, when a supply shock occurs, rates are not raised.”

He also described U.S. core inflation as remaining at “a very moderate level.”

Bessent declined to give a specific interest-rate outlook, saying he would not speculate on what the Federal Reserve will do next.