Bessent Pushes Pause on Fed Cuts as Warsh Looms Over Next Cycle

Treasury Secretary Scott Bessent signaled the Fed should hold rates for now amid the Iran war’s fallout while noting rate cuts will be needed later; he urged letting new Fed chair Kevin Warsh set the path for the rest of the year, and suggested the administration wouldn’t object to Powell remaining in an acting capacity if Warsh isn’t confirmed in time. Trump has pressed for deeper cuts, but Warsh’s nomination advances in the Senate. Bessent also warned gas prices could stay elevated until the conflict ends, after which inflation should ease.