U.S. Treasury Secretary: Traditionally, interest rates are not raised when facing supply shocks.

Mars Finance News, August 31: U.S. Treasury Secretary Bessent said, “Traditionally, interest rates are not raised in response to supply shocks. (Regarding the bond market) I have not bought any bonds yet.”
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LeverageDancer
· 4 hours ago
Bessent’s comment is interesting: not hiking rates in response to a supply shock is probably to avoid a hard economic landing, but are we just ignoring inflation?
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MultiSigGuardian
· 4 hours ago
Traditionally, it would not raise rates, but this time tradition may not be enough: the triple shock of supply chains, geopolitics, and tariffs has put the Fed in a dilemma.
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LeverageThermometer
· 5 hours ago
The finance minister says he bought no bonds—will markets read that the opposite way, as a sign he’ll act soon? Smooth expectation management.
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MacroShield
· 5 hours ago
Haven’t bought the bonds yet—the implication is that the current price isn’t right, so they’re waiting for it to fall far enough before buying the dip. Classic old Wall Street.
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OnChainDetective
· 6 hours ago
Hiking rates during a supply shock is indeed rare; with the lessons of 1970s stagflation in mind, Bessent is clearly hinting that policy space is limited.
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