Nick Timiraos, the “New Federal Reserve News Agency,” believes that US Treasury Secretary Bezent's policy response function has changed to a less dovish. His remarks this year suggest that the Federal Reserve should keep interest rates unchanged. Earlier this year, Bezent quoted models saying that the Federal Reserve's interest rate level may range from more than 25 basis points to more than 100 basis points higher than the neutral interest rate. Today, he made two points. He first defended Walsh's decision not to explain any policy response function last week: “I think every meeting should be open, and market participants should judge for themselves... I think Walsh wants to preserve the space for choice to achieve the best results.” Second, he did suggest a set of policy response functions that can be viewed as dovish, and argues that recent shocks should be ignored: “What impact will rising short-term interest rates have? We'll wait and see.” He raised the issue, but then responded by stating that underlying inflation was “very moderate... very stable.” “The rest of core inflation, after excluding fluctuations which are more affected by energy, has remained very stable. I think this will continue.”

Nick Timiraos, the “New Federal Reserve News Agency,” believes that US Treasury Secretary Bezent's policy response function has changed to a less dovish. His remarks this year suggest that the Federal Reserve should keep interest rates unchanged. Earlier this year, Bezent quoted models saying that the Federal Reserve's interest rate level may range from more than 25 basis points to more than 100 basis points higher than the neutral interest rate. Today, he made two points. He first defended Walsh's decision not to explain any policy response function last week: “I think every meeting should be open, and market participants should judge for themselves... I think Walsh wants to preserve the space for choice to achieve the best results.” Second, he did suggest a set of policy response functions that can be viewed as dovish, and argues that recent shocks should be ignored: “What impact will rising short-term interest rates have? We'll wait and see.” He raised the issue, but then responded by stating that underlying inflation was “very moderate... very stable.” “The rest of core inflation, after excluding fluctuations which are more affected by energy, has remained very stable. I think this will continue.”