Bessent Urges Fed to Delay Rate Cuts Amid Iran War

U.S. Treasury Secretary Scott Bessent urged the Federal Reserve on Monday to adopt a wait-and-see approach before lowering interest rates, citing economic uncertainties from the ongoing war in Iran. Speaking at the Semafor World Economy event in Washington, D.C., Bessent emphasized the need for caution as rising energy prices complicate the inflation outlook.

The conflict has disrupted global oil supplies by closing the Strait of Hormuz, a vital shipping route through which about 20 percent of the world's oil passes daily. The waterway's month-long shutdown drove up crude prices, contributing to a spike in U.S. inflation. Government data released Friday showed consumer prices rose 3.3 percent over the past year in March, an increase of 0.9 percentage points from February and the sharpest monthly gain since 2005. Higher gasoline costs accounted for much of the rise, with Americans facing elevated prices at the pump.

A ceasefire agreement reached last week between the United States and Iran includes a pledge from Iran's Islamic Revolutionary Guard Corps to reopen the strait. U.S. forces have since blockaded the area to secure safe passage for vessels. On Monday, President Donald...