Treasury Secretary Scott Bessent said the Federal Reserve is “doing the right thing by sitting and watching” to see how the war in Iran affects the U.S. economy before cutting interest rates.

Bessent’s comments mark a pivot in the way the Trump administration is approaching interest rates, after historically putting pressure on the Federal Reserve to lower rates. President Donald Trump has consistently criticized Federal Reserve Chairman Jerome Powell for his reluctance to slash rates, but the economic uncertainty from the Iran war seems to be causing the administration to change its tune on when the next rate cut should happen.

Recommended Stories

Inflation rose to 3.5% in March in Fed’s preferred gauge because of Iran war fallout

Tough news for Kevin Warsh in first full week as Fed chairman

Warsh faces similar trap to the one that led to huge inflation in 2022