The inflation story gets a little less spicy
Treasury Secretary Scott Bessent went on CNBC’s Squawk Box and basically told viewers to hang tight: after one or two more hot inflation numbers, he thinks the U.S. could be headed for “substantial disinflation.”
That’s not exactly a victory lap, but it is a pretty clear signal that one of Washington’s top economic voices believes the price-pressure hangover is nearing its peak. If you’ve been watching markets lately, you know that even a whisper of cooling inflation can send bond yields, rate-cut odds, and growth stocks doing a little happy dance.
Why investors should care
This kind of comment matters because it nudges the market narrative. The setup here is basically:
- a couple more sticky inflation prints,
- then easing price growth,
- then maybe a more comfortable path for the Fed to consider cutting rates later.
Of course, that’s a big “if.” One person’s forecast doesn’t magically tame rent, gasoline, or food prices. But when the Treasury Secretary says inflation may soon roll over, traders tend to listen — sometimes a little too enthusiastically.
Big picture
The message is simple: the inflation fight may not be over, but Washington is starting to sound more confident that the next chapter is disinflation, not reacceleration. If that plays out, the winners could be the usual suspects — duration, rate-sensitive sectors, and anything that gets cranky when borrowing costs stay high.