India, Oct. 7 -- US Treasury Secretary Scott Bessent says the economy is getting stronger, and he expects inflation and bond yields to fall once the Iran conflict ends. Bessent said the current rise in inflation and bond yields is largely linked to the energy shock caused by the war.

Bessent said headline inflation is around 3.5%, but underlying inflation is much lower. He said core inflation, which removes volatile food and energy prices, is about 2.3%. Bessent believes the energy shock from the Iran conflict is temporary. He said energy prices should fall once the conflict ends, which could also bring inflation and longer-term bond yields lower.

Bessent also pointed to job growth as a sign that the US economy is strengthening. He said...