Treasury Secretary Scott Bessent believes the Fed should take a data-driven approach to its rate path outlook and assess the economic impact of the U.S.-Iran war before deciding to lower rates.
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New trading tool for QQQ bulls“Do I think rates should be lowered? Eventually,” said Bessent in an interview with Semafor. “I think now that we have to wait and see.” Bessent added that he believes higher prices from the conflict are temporary and will not affect long-term inflation expectations.
Inflation Rises Sharply with Fed Expected to Hold Rates
The Consumer Price Index (CPI) rose 0.9% month-over-month in March, marking the highest monthly gain since June 2022 amid surging gas and oil prices. Within the index, gas prices rose 21.2%, accounting for nearly three quarters of the overall CPI increase.
The Fed is set to make its next interest rate decision on April 29 and is widely expected to hold rates steady. In fact, odds from the CME FedWatch tool suggest that the central bank will leave rates unchanged for the entire year.