Treasury Secretary Scott Bessent said Thursday he anticipates price pressures will ease soon despite negative inflation data.
Speaking to CNBC, Bessent attributed the recent surge to energy costs and said the U.S. will continue pumping oil to ease supply shocks from the Iran war.
“I firmly believe that nothing is more transient than a supply shock,” Bessent said, adding that core inflation will continue to decline.
Recent data showed consumer prices rose 0.6% in April, with core costs up 0.4%. Twelve-month inflation reached 3.8%, while core inflation stood at 2.8%.
Wholesale prices jumped 1.4%, pushing the annual rate to 6%, the highest since late 2022. Import and export prices hit their highest in four years.
Bessent's comments came as incoming Fed Chair Kevin Warsh prepares to take over Friday.
