US Treasury chief says Fed should not hike rates over energy shock tied to Iran war
Bessent said the central bank should avoid reacting to noisy data as a stronger-than-expected jobs report bolstered the case for rate hikes.
- On Friday, Treasury Secretary Scott Bessent urged the Federal Reserve to maintain an open mind regarding interest rate hikes, citing an 'energy supply shock' tied to the Iran war.
- A stronger-than-expected US jobs report last week bolstered the case for further rate hikes, which had lost momentum amid a post-election stock market selloff and fears that weaker AI-driven demand could undercut the economy.
- During a CNBC interview, Bessent argued the Fed should avoid hiking rates into a cooling energy supply shock, saying, 'The Fed's supposed to look into the future, not look in the rearview mirror.'
- The Federal Reserve left its policy rate on hold last month, with Fed Chairman Kevin Warsh stating policymakers would monitor data to determine if further monetary policy tightening is necessary.
- Bessent noted the Fed implemented three rate cuts over the same period last year, contrasting with current pressures to potentially raise rates.
14 Articles
14 Articles
They contemplate it because of an "energy supply crisis" related to Iran's war
US Treasury chief says Fed should not hike rates over energy shock tied to Iran war - Regional Media News
WASHINGTON, Nov 13 (Reuters) - US Treasury Secretary Scott Bessent said on Friday that the Federal Reserve should have an open mind and not hike rates because of an "energy supply shock" tied to the Iran war. "I think the Fed should understand that this [...]
The Economic Times
US Treasury chief says Fed should not hike rates over energy shock tied to Iran war
During his speech, US Treasury Secretary Scott Bessent advocated for the Federal Reserve to keep an open mind about interest rate adjustments. He pointed out that the current economic indicators could be skewed due to a supply shock from the ongoing conflict in Iran. Despite recent market volatility, Bessent stressed that the US economy remains robust.
Treasury Secretary Scott Bessen has called on the Federal Reserve (Fed), which acts as the US central bank, to raise interest rates more moderately. According to the minister, the current energy crisis can be traced back to unique geopolitical reasons, and the United States' economic fundamentals remain exceptionally strong, so there is no need for excessive monetary tightening.
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