US Stock Market: Bessent applauds Fed communication reset, questions dot plot's relevance

US Treasury Secretary Bessent expressed support for Fed Chair Warsh's review of the Federal Reserve's communication framework, including the quarterly dot plot publication. Bessent argued that forward guidance has become a crutch for financial markets and suggested the dot plot often fails to accurately predict the future path of monetary policy. He also noted that AI-driven productivity gains could help inflation return to the 2 percent target without sacrificing growth, and that a stronger dollar can be supported by relative economic strength rather than higher interest rates alone.