US Treasury Secretary: No need to raise interest rates over Iran war energy crisis
US Treasury Secretary Scott Beisent says the Federal Reserve should remain flexible and avoid raising interest rates due to the energy crisis linked to the Iran conflict.
Treasury Secretary Scott Beisent expressed the view that the Federal Reserve should refrain from raising interest rates due to the energy crisis caused by the Iran conflict. In an interview with CNBC, Beisent emphasized the need for the Federal Reserve to maintain flexibility and avoid raising interest rates in response to the energy supply crisis.
He stated that while the underlying US economy remains strong, raising interest rates excessively during an energy supply crisis, especially as it subsides, would be based on misleading figures. Beisent urged the Fed to look ahead, not in the rearview mirror, and pointed out that the Fed had cut interest rates three times during the same period last year.
He concluded that shifting toward a more tightening monetary policy because of an energy supply crisis would not be a decision he would make if he were a member of the Federal Reserve, though he is not a member.
Written by urgent.news from Ajel English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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