Scott Bessent urges caution on rate cuts as Iran war complicates Federal Reserve outlook

Scott Bessent said the Federal Reserve does not need to hurry into rate cuts, even if lower rates may still come later. Speaking Monday at Semafor World Economy in Washington, DC, the US Treasury Secretary said the war in Iran has added too much uncertainty for the central bank to act fast. Bessent said, “Do I think rates should be lowered? Eventually. I think now that we have to wait and see.” Scott said the economy looked strong before the shock hit. He said, “But I think as we went into January [and] came out of January and February, the economy was very strong.” That came as Donald Trump kept pushing the Fed to cut borrowing costs. Bessent said the Fed is “doing the right thing by sitting and watching” while the Iran conflict unfolds. Scott says the Fed should sit tight while oil drives faster inflation Scott said he does not think the jump in prices will stick in people’s minds.