US Treasury Secretary Scott Bessent said the Federal Reserve should “wait and
see” before cutting interest rates as it assesses the economic impact of the war
in Iran, speaking at Semafor World Economy in Washington. He said rate cuts
would eventually be appropriate but argued current conditions warrant caution,
noting the US economy remained strong earlier this year. Bessent added he would
be “shocked” if the European Central Bank raised rates, while saying recent
inflation pressures, driven largely by energy costs, are unlikely to become
entrenched. He cited US data showing March inflation rising three times faster
than February, but said core inflation is easing and expectations remain
anchored. Bessent also suggested the Iran conflict could ultimately be viewed as
contributing to longer-term stability, while acknowledging growth forecasts may
need to be revised downward from earlier expectations above 4%.
