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Nick Timiraos, chief economics correspondent at Wall Street Journal, reports that Bessent expressed hope the Federal Reserve will 'keep an open mind' in its approach to monetary policy. Bessent compared desired policy to the mid-1990s under Greenspan, suggesting a preference for flexibility over the European Central Bank's actions during the oil shock of 2008.
He also noted that the private sector is experiencing a demand shock that is currently being met by increased supply, attributed to deregulation.
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Earlier this year, Timiraos reported that investors widely expected the Federal Reserve to raise interest rates for the first time in three years, though the future path remained uncertain, according to his coverage. He also noted that Fed governor Chris Waller shifted from a tightening bias to favoring a holding stance as economic signals changed, as detailed in a previous article. These developments frame current discussions about monetary policy flexibility.