U.S. Treasury Secretary Scott Bessent has endorsed Federal Reserve Chair Kevin Warsh’s proposal to eliminate the central bank’s dot plot, arguing that policy-makers should maintain a flexible approach to inflation rather than relying on rigid forward guidance.
Bessent’s comments, made in a media interview on Wednesday, mark a significant alignment between the Treasury and the Fed’s new leadership.
By supporting the removal of the dot plot—a tool that reveals individual FOMC members’ interest rate projections—Bessent is signaling a preference for a less predictable, more data-dependent monetary policy framework.
He emphasized that officials need to keep an open mind regarding the inflationary impact of current economic conditions, suggesting that pre-committing to specific rate paths could be counterproductive.
The endorsement comes as Warsh navigates his first press conference as Fed chair, inheriting a complex political environment.
According to earlier reports, Senator Bill Tillis has indicated support for Warsh, effectively clearing the path for the Trump administration’s preferred candidate to lead the central bank.