Business · Economy · 9 hrs ago
Bessent urges Fed not to raise rates over Iran-linked energy shock
US Treasury Secretary Scott Bessent urged the Federal Reserve not to raise interest rates because of an energy supply shock linked to the Iran war.
He said the shock may be easing and warned that reacting too strongly could mean relying on temporary, misleading economic signals.
Bessent said the US economy remains strong and that the Fed should look ahead when setting policy.
His comments come as a stronger-than-expected jobs report renewed the case for rate hikes, while stock market losses and concerns about weaker AI-related demand had dampened those expectations.
The Fed left its policy rate unchanged last month, and its chair, Kevin Warsh, said policymakers would watch economic data to decide whether further tightening is needed.
Bessent said he was not telling the Fed what to do, and the central bank will make its decision based on incoming data.
Treasury Secretary Scott Bessent urged the Federal Reserve not to raise interest rates sharply in response to an energy supply shock linked to the Iran war.
He said the Fed should keep an open mind and look ahead because energy-related figures are volatile and the shock may be easing.
Bessent said the US economy remains strong and that he would not make a sharp policy reversal based only on the energy shock.
The Fed left its policy rate unchanged last month and said it would monitor economic data before deciding whether further tightening was needed.
A stronger-than-expected US jobs report last week added support for further rate increases, while market concerns had previously weakened that case.
- Who
- US Treasury Secretary Scott Bessent and the Federal Reserve.
- What
- Bessent urged the Fed not to raise rates sharply in response to the energy supply shock.
- When
- Friday, November 13, 2026.
- Where
- In an interview with CNBC.
- Why
- He said the energy shock may be easing, its figures are volatile, and the US economy is strong.
This story does not have two clearly opposing sides.
The Federal Reserve cut interest rates three times during the same period.
The Federal Reserve left its policy rate unchanged.
A stronger-than-expected US jobs report bolstered the case for further rate increases.
Bessent urged the Fed in a CNBC interview not to raise rates sharply over the energy supply shock.
- Speaker
- Scott Bessent, US Treasury Secretary
- Cause of energy shock
- Iran war
- Interview outlet
- CNBC
- Fed decision last month
- Left its policy rate unchanged
- Rate cuts last year
- Three
- Jobs report
- Stronger than expected last week
3 sources
What people are saying
I think the Fed should understand that this is an energy supply shock
I'm not going to tell the Fed what to do. I am going to say they should have an open mind
The council is supposed to look into the future, and not look in the rearview mirror