Secretary of the Treasury Scott Bessent gave a shout-out to the alternative inflation-measurement firm Truflation during a Hearing of the Senate Banking Committee.
Truflation is an independent entity that provides an alternative perspective on economic data points.
The US government, and importantly, the US Federal Reserve, tout current inflation rates hovering around 2.7% as reported by the Department of Labor Statistics.
Truflation recently reported that their measures indicate inflation has cratered, going from 1.24% to 0.86%, the lowest since 2020.
As the Fed holds a two-part mission of full employment and inflation at 2% if Truflation is correct, the Fed is way behind the rate curve.
The Fed says it reviews external data points, but it is unclear whether Truflation is among them. Secretary Bessent’s reference to “Truflation” indicates that administration insiders are aware of the opposing view and are giving it credence.
Bessent has emerged as one of the Administration’s stars, a sophisticated expert on the markets; his expansive knowledge has confounded the opposition.