Treasury Secretary Bessent Urges Fed to Delay Rate Cuts as Oil Prices Rise Above $100 Amid Iran Conflict

Bessent Advises Delay on Rate Cuts U.S.

Treasury Secretary Scott Bessent stated at the Semafor World Economy conference in Washington, DC, that the Federal Reserve could wait to lower interest rates amid the oil spike. The ongoing war in Iran has driven up oil prices to above $100 a barrel.

Bessent said the Fed should 'wait and see' on rate cuts as the Iran war keeps inflation risks elevated, including from the Strait of Hormuz disruption. Bessent said, 'Do I think rates should be lowered? S.

economy before cutting interest rates. Bessent added that the Fed is 'doing the right thing by sitting and watching' the war in Iran. ' The Federal Reserve was last expected to hold rates steady this year, with the slimmest possibility of a hike, according to fed funds futures pricing.

Earlier Views on Rate Reductions Scott Bessent previously stated in January that Fed Chair Jerome Powell should hasten cutting interest rates, saying reductions are 'the only ingredient missing for even stronger economic growth.

' Bessent stated that the economy was very strong coming out of January and February. Jerome Powell's term as Fed Chair is up in May. Kevin Warsh is Trump's nominee for Fed Chair, selected with help from Scott Bessent.

Powell could have to stay on longer as Fed Chair if Kevin Warsh cannot get confirmed by the Senate by the time his term ends.

Confirmation Hurdle for Warsh Senator Thom Tillis has vowed to block a Kevin Warsh confirmation vote until U.S.

Attorney Jeanine Pirro ends her criminal probe into Jerome Powell related to Fed building cost overruns. Jerome Powell stated that the probe into him is designed to put pressure on him by the Trump administration for not cutting rates more.

on March 27, 2026.