"That's a dangerous thing," he said Thursday during an interview with Bloomberg TV, describing a scenario where demand and prices for Treasuries fall as foreign interest in the market declines.
The most senior officials from the US Federal Reserve, the European Central Bank, and the Bank of England are expected to take part in a desktop stress test to respond to another Lehman Brothers-style collapse.
The New York Fed's Survey of Consumer Expectations indicated that one-year inflation expectations rose to 3% in March, with gas price expectations jumping to 9%, the highest since March 2022.
September, or more likely October, is now the realistic opportunity for a rate cut, and even that is far from guaranteed. The data coming through is not consistent with easing in July. In fact, it points in the opposite direction. Inflation is not falling fast enough. The latest wholesale inflation data shows prices rising at 3.4% year-on-year, the strongest pace in a year, and core measures are still running close to 4%.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain, the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.
Scott Bessent used a Senate appearance to defend President Donald Trump's campaign to slash interest and raise tariffs. Treasury Secretary Scott Bessent has faced questions from the United States Senate about President Donald Trump's ongoing campaign to slash interest rates, despite concerns that such a move could turbo-charge inflation. Bessent appeared on Thursday before the Senate's Financial Stability Oversight Council. There, he received a grilling from Democrats over rising consumer prices and concerns about Trump's attempts to influence the Federal Reserve, the US central bank.
