Bessent Says Four Recent Bond Auctions Were Strongest in 20 Years

Treasury Secretary Bessent said the four strongest bond auctions in 20 years had taken place recently, describing markets as resilient as an energy supply shock fades.

He said the Federal Reserve should focus on the future and should not pivot because of the energy shock. Bessent also said excessive rate hikes would be inappropriate as the shock recedes.

Bessent said gasoline prices are falling and that next week’s data may be mild. He urged the Fed to keep an open mind as energy pressure eases.

He cited strong bond auctions and demand for the dollar while describing markets as resilient. Bessent also said he was confident in the economy, described conditions as very good and said there were no warning signs.

The comments add to Bessent’s earlier remarks on core inflation and the energy shock, when he said core inflation remained under control and excessive rate hikes would be inappropriate as the shock neared its end.