Bessent backs Warsh: Fed attentive to inflation above target, energy supply shock calls for open mind

28 Oct 2026

28 Oct 2026, 21:40 UTC+01:00

Markets TradeReviewed News Desk

US Treasury Secretary Scott Bessent weighed in on Federal Reserve policy on Wednesday evening, October 28, only hours after the Fed left its policy rate at 3.75% to 4.00%. According to headlines relayed by Walter Bloomberg, Bessent said the Fed is “very attentive to being above inflation target for a long time”.

In the same set of comments, Bessent said he thinks the economy is facing an energy supply shock and that the Fed “should have an open mind”. He added that he expects a strong GDP number for the third quarter and that he and President Trump have “a lot of confidence” in Fed Chair Kevin Warsh.

Why the comments matter after the Fed decision

The remarks land on a day when the Fed delivered what markets read as a hawkish hold. The decision passed 10-2, with Governor Lisa Cook and Cleveland Fed President Beth Hammack voting for a 25 basis point hike. At his press conference, Warsh said inflation is too high, that third-quarter GDP is likely above 3% and that the Fed has made clear its readiness to act. We covered that in our report on Warsh’s press conference.

Bessent’s line about an energy supply shock is the more interesting part. Supply shocks push prices up while slowing activity, and central banks often argue they should look through them rather than hike into them. Asking the Fed to keep an open mind can be read as a nudge against reacting too aggressively to energy-driven inflation, while his comment on the inflation target signals the administration is not dismissing the problem either.

Market backdrop

Bond markets were already under pressure. The 10-year Treasury yield was last up about 4 basis points at 5.034%, per Walter Bloomberg, and traders have been pricing a high chance of a December hike. Crypto stayed calm: on OKX, Bitcoin traded near $81,130 around 21:40 CET, up about 0.6% from its level 24 hours earlier, while Ether was close to $2,351.

What it means for traders

Comments from the Treasury do not set rates, but they shape expectations around the Fed’s next move. If markets read Bessent as pushing back against a December hike, that could ease pressure on yields and help risk assets such as BTC and ETH. If the focus stays on sticky inflation and 5% yields, the macro headwind remains. Expect headline-driven moves around the Q3 GDP release.

Macro days bring fast wicks in both directions, so size positions carefully and use stop losses. Compare fees, liquidity and derivatives depth in our crypto exchange comparison, where BingX ranks first and OKX second, and see how we test exchanges.

For information only, not financial advice. Prices: OKX spot market data around 21:40 CET.

Sources

• Walter Bloomberg: Bessent: Fed is very attentive to being above inflation target for a long time
• Walter Bloomberg: Bessent: think we are getting energy supply shock, think Fed should have an open mind
• OKX public market data (BTC-USDT, ETH-USDT)

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Sources

• Walter Bloomberg: BESSENT: FED IS VERY ATTENTIVE TO BEING ABOVE INFLATION TARGET FOR A LONG TIME
• Walter Bloomberg: BESSENT: THINK WE ARE GETTING ENERGY SUPPLY SHOCK, THINK FED SHOULD HAVE AN OPEN MIND

News is for information only and is not financial advice. More crypto news