“US economy is in a transition,” said White House (WH) Economic Adviser Brian Deese during an interview with CNN on Tuesday.

The policymaker also signaled the WH's aim to ease the price pressure and the Federal deficit during the interview.

Market implications

Such comments from the key diplomat ahead of the Federal Open Market Committee (FOMC), up for Wednesday, exert additional pressure on the Fed to act, which in turn adds to the risk-off mood.

It’s worth noting that earlier in the day, National Economic Council Deputy Director Bharat Ramamurti also crossed wires and signaled inflation as the key problem.

Also read: WH Economic Adviser Ramamurti: Inflation is a global problem – Bloomberg