The US Treasury secretary on Thursday rejected the “doomer view” of conflicting economic data, as the White House struggles to sell the Iran war while oil prices fuel inflation.
New figures show Americans are saving less, but Scott Bessent said that could signal “higher confidence” rather than household stress, or that consumers buoyed by stock-market gains are spending their paychecks more freely.
The jobs market remains stable, but a key inflation gauge jumped in April and first-quarter economic growth was revised downward.
The reports complicate the path ahead for new Federal Reserve Chair Kevin Warsh, who was chosen to deliver interest rate cuts but now has to contend with stubborn inflation, slower growth, and a growing hawkishness within the Fed.