Economics Daily

Bessent Signals Potential Cover for Warsh to Stand Pat on Rates

Twice in two days, Bessent said he would understand it if the Fed doesn’t proceed with reducing rates as it awaits more information about the impact the Iran war is having on the US.
Scott BessentPhotographer: Mattie Neretin/Bloomberg
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I’m Chris Anstey, a senior economics editor visiting Washington this week for the IMF-World Bank spring meetings. Today we’re looking at a new line of messaging from the US Treasury chief on interest rates. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.

After repeatedly indicating for the better part of a year that conditions called for the Federal Reserve to lower rates, Treasury Secretary Scott Bessent has a new message: It’s all right for the US central bank to hold off.