U.S. Treasury Braces for Hot Inflation Data

The U.S. Treasury is preparing for possible short-term spikes in inflation, according to Secretary Scott Bessent. Speaking to CNBC from Beijing, Bessent predicted potential 'hot' inflation readings before a trend of disinflation is expected to continue.

Newly appointed Federal Reserve Chair Kevin Warsh will approach inflation with flexibility, as energy prices are projected to decline. Bessent emphasized that the oil markets foresee lower prices shortly, linked to the expected reopening of the Strait of Hormuz.

Warsh, having been confirmed by the Senate, stands ready to navigate these inflation variations. Bessent expressed confidence in a return to disinflation after any brief inflationary surges.

(With inputs from agencies.)