U.S. treasury secretary bessent reports subdued core inflation excluding energy

U.S. Treasury Secretary Scott Bessent has indicated that core inflation in the United States, excluding energy-related segments, remains very subdued. This statement follows recent data showing that core inflation, measured by the CPI less food and energy, stood at 2.9% year-over-year in May 2026 and core PCE at 3.3% in April 2026, both above the Federal Reserve’s 2% target. Bessent’s comments suggest that the trend of decreasing core inflation could alleviate some concerns over inflationary pressures. Market participants are closely monitoring these developments, which may influence expectations for future monetary policy adjustments by the Federal Reserve. Key Takeaways Bessent’s statement appears to suggest a continuation of the trend of decreasing core inflation, potentially impacting monetary policy expectations. Markets appear to interpret the subdued inflation as supportive of a scenario where the Federal Reserve may consider rate cuts in upcoming meetings. The pricing of related financial instruments suggests that participants view lower core inflation as a factor in possibly achieving a favorable July CPI print. What to Watch Observers will be focusing on the upcoming Bure...