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Nick Timiraos, chief economics correspondent at Wall Street Journal, shares Bessent's view that after one or two additional hot inflation readings, substantial disinflation is likely to follow.
Timiraos highlights Bessent's stance during the Covid period, emphasizing skepticism about the transient-inflation narrative due to the impact of highly expansionary fiscal policy financed by debt purchases.
Timiraos recently reported that U.S. household employment dropped by 226,000 as both the labor force and participation rates fell. He also noted that job openings remained steady at 7 million in March, with vacancies closely matching the number of unemployed workers. These data points provide additional context to his commentary on inflation and labor market trends.