US Treasury chief urges Fed caution on rates amid Iran shock
In short
US Treasury Secretary Scott Bessent said the Federal Reserve should keep an open mind about interest rate changes. He said current economic signals may be distorted by a supply shock linked to the conflict in Iran, and he said the US economy is still strong.
What the reporting says
US Treasury Secretary Scott Bessent said the Federal Reserve should keep an open mind on interest rate adjustments during a speech, citing a possible supply shock from the conflict in Iran. He said current indicators could be skewed and stressed that the US economy remains robust despite recent market volatility. The comments add a cautionary note to rate expectations, but no policy decision was announced.
Why it matters
US Treasury Secretary Scott Bessent urged the Federal Reserve to stay open to interest rate adjustments during a speech, saying current indicators may be skewed by a supply shock linked to the conflict in Iran. He also said the US economy remains robust despite recent market volatility.