U.S. Treasury Secretary Bessant supports reconsidering the Federal Reserve's 2% inflation target.

U.S. Treasury Secretary Bessant supports re-evaluating the Federal Reserve's 2% inflation target after the inflation rate has consistently fallen back to the 2% target level. In an interview on the "All-In" podcast, Bessant stated, "When we get back to 2% inflation (which I think is within reach), then we can start discussing whether setting a target range would be more sensible." Bessant suggested in the interview that the discussion could revolve around adjusting the inflation target to a range of 1.5%-2.5% or 1%-3%. Federal Reserve policymakers officially adopted the 2% inflation target in 2012, a target adopted by many central banks worldwide. Bessant pointed out that pursuing decimal precision is absurd, but he also warned that adjusting the target when inflation is high could give the impression of "constantly raising the target whenever it exceeds the standard." This interview was recorded after the release of the November CPI data (i.e., December 18). (Jinshi)