Bessenet: It is expected that inflation will significantly decline in the first six months of 2026, and the candidate for the Federal Reserve Chair may be announced in early January

On Tuesday (December 16), U.S. Treasury Secretary Becerra expressed an optimistic outlook on the U.S. economic prospects, predicting that the GDP growth rate for the entire year of 2025 will reach 3.5%, and he feels optimistic about the prospects for American workers next year.

He expects inflation to decline significantly in the first six months of 2026, and rents will also decrease significantly, believing that despite the already high price levels, the increase in real wages will address this issue.

At the same time, Becerra pointed out that Trump will announce the Federal Reserve Chair nominee in early January, and there may be one or two more interviews this week. This key appointment will influence the direction of U.S. monetary policy for the coming years, and the market is highly focused on it.

Becerra denied external doubts about the independence of the new Federal Reserve Chair, stating that Trump has been very straightforward about policy-related issues during the interviews. He noted that candidates Waller and Hassett are both very qualified and refuted the claim that "Hassett cannot have influence at the Federal Reserve."

Becerra stated that Congress should stop (lawmakers') stock trading activities.

Economic Growth and Inflation Outlook

Becerra predicts that the U.S. GDP growth rate for the entire year of 2025 will reach 3.5%, indicating a strong expectation for economic growth. He feels optimistic about the prospects for American workers next year.

Regarding inflation, Becerra expects inflation to decline significantly in the first six months of 2026, and rents will also decrease significantly. He acknowledged that price levels are already very high but believes that the increase in real wages will address this issue, bringing substantial purchasing power improvements to American households.

Federal Reserve Chair Nominee to be Announced Soon

Becerra revealed that Trump will announce the Federal Reserve Chair nominee in early January, speculating that this key appointment will be officially announced at that time. There may be one or two more Federal Reserve interviews taking place this week.

He clearly denied the claim that "the new Federal Reserve Chair will not maintain independence," emphasizing that Trump has been very straightforward about policy-related issues during the interviews. Becerra stated that both Waller and Hassett are very, very qualified and denied the claim that "Hassett cannot have influence at the Federal Reserve."

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