"Not necessarily" is the phrase that caught my eye in Scott Bessent's CNBC interview.

"Not necessarily" is the phrase that caught my eye in Scott Bessent's CNBC interview. I'd written that Warsh's own language sounded closer to the case for a hike than to a Fed hold. The Fed has now held rates at 3.75%, 4%, but two voters wanted a quarter-point hike.

Asked whether another Fed hike would be a policy mistake, Bessent answered, "Not necessarily." He also reaffirmed his confidence in Fed Chair Kevin Warsh. BusinessKorea reported those remarks following the Fed's decision.

Bessent urged an open mind about whether energy inflation from the US-Iran conflict could prove temporary. The Fed described inflation as elevated and said it needs more information. Treasury is monitoring AI financing concerns, though Bessent played them down: neoclouds are a small part of the AI ecosystem, he said, and funding continues.

My read is that I'd be wary of assuming Washington will push back on another hike. I'd also be wary of assuming AI credit stress alone brings easier policy. Bessent's remarks are his view, not Fed guidance; the two dissents are the clearer signal that further tightening remains in play.

Source:
BusinessKorea: https://www.businesskorea.co.kr/news/articleView.html?idxno=279938

Not financial advice. For informational and educational purposes only.