US Treasury warns against rate hikes during US-Iran war energy ‘shock’

What happened: US Treasury Secretary Scott Bessent urged the Federal Reserve not to raise interest rates in response to an energy supply shock tied to the US-led conflict with Iran, saying the underlying US economy is very strong. Key numbers: Fed held rates at 3.75 to 4 percent; CME FedWatch forecasts an 89.4 Why it matters: Bessent's remarks come as some Fed officials push the opposite way. Governor Christopher Waller said he planned to support a quarter-point increase in December unless core CPI came in at 0.3 percent or more, and the CPI report showed a 0.4 percent monthly increase. Coverage: 3 outlets in 24h

US Treasury Secretary Scott Bessent urged the Federal Reserve not to raise interest rates in response to an energy supply shock tied to the US-led conflict with Iran, saying the underlying US economy is very strong.

Bessent's remarks come as some Fed officials push the opposite way. Governor Christopher Waller said he planned to support a quarter-point increase in December unless core CPI came in at 0.3 percent or more, and the CPI report showed a 0.4 percent monthly increase.