US Treasury chief says Fed should not hike rates over energy shock tied to Iran war
TLT•Treasury Secretary Scott Bessent said the Federal Reserve should keep an open mind and avoid hiking rates in response to an energy supply shock tied to the Iran war. He said the underlying US economy is strong and the shock is coming down.
1. Bessent weighs in on rates
Bessent said the Federal Reserve should view the Iran war-related energy shock as temporary and avoid hiking rates based on what he called noisy numbers. He said the Fed should look ahead rather than rely on past data.
2. Rate decision context
A stronger-than-expected US jobs report last week bolstered the case for further rate hikes. The Fed left its policy rate unchanged last month, and Chairman Kevin Warsh said policymakers would watch data to decide whether more tightening was needed.
