Bessent says confident that core inflation is going down, Fed will need to cut rates

U.S. Treasury Secretary Scott Bessent on Tuesday said he was quite confident that core inflation would continue to go down in the ‌United ⁠States ⁠despite the Iran war, and repeated his call for the Federal Reserve to cut its interest rates.

Bessent said he could understand if U.S. central bankers wanted to ⁠observe economic ‌developments related to the war before they cut ⁠rates, adding that it also made sense for U.S. President Donald Trump's nominee as Fed chair, Kevin Warsh, to lead the next cycle of monetary adjustments.

Asked if the Trump ‌administration would accept current Fed Chair Jerome Powell staying ​in ​the top ⁠spot after his term ends in May, if Warsh's nomination was not ​approved by the Senate by then, Bessent said, "We want Kevin Warsh in as soon as possible."