U.S. Treasury Secretary Bessent: We expect inflation to begin decreasing and long-end is very well anchored

U.S. Treasury Secretary Bessent: We expect inflation to begin decreasing and long-end is very well anchored

U.S. Treasury Secretary Scott Bessent offered an optimistic outlook on the U.S. economy during a press conference in Madrid, stating that the Federal Reserve's efforts to control inflation are beginning to show positive results. Bessent expressed confidence that inflation rates will start to decrease and that the long-end of the yield curve is well-anchored .

The Treasury Secretary's remarks came as part of a broader discussion on the ongoing trade negotiations between the U.S. and China. Bessent mentioned that a framework for a deal on TikTok has been reached, which would facilitate a transition to U.S. ownership. Further details of this agreement are expected to be finalized during a meeting between U.S. President Donald Trump and Chinese Premier Xi Jinping scheduled for Friday .

Bessent's comments on inflation and the yield curve were seen as a positive sign by financial analysts, who have been closely monitoring the Fed's monetary policy. The long-end of the yield curve, which is sensitive to inflation expectations, has remained relatively stable, indicating that investors are not overly concerned about long-term inflation risks. This stability is crucial for maintaining economic growth and financial stability.

The Treasury Secretary's remarks also highlighted the importance of international cooperation in addressing global economic challenges. The potential deal on TikTok is seen as a step towards reducing tensions between the U.S. and China, which could have broader implications for the global economy.

As the U.S. economy continues to navigate the post-pandemic recovery, investors are closely watching the Federal Reserve's monetary policy and the progress of trade negotiations. Bessent's comments offer a glimmer of hope that the U.S. economy is on the right track, with inflation beginning to decrease and the long-end of the yield curve remaining stable.