Treasury Secretary Scott Bessent Opposes Immediate Fed Rate Hikes Amid White House Pressure Campaign
Treasury Secretary Scott Bessent has voiced opposition to immediate interest rate hikes by the Federal Reserve, attributing current inflation to supply shocks, particularly oil prices. He argues that there is no urgency for the Fed to act until inflation demonstrates 'second- and third-round effects.' This stance comes amidst an intense pressure campaign from the White House, with President Trump and economic advisor Peter Navarro publicly advocating for rate cuts. Navarro has even referred to some members of the Federal Open Market Committee (FOMC) as 'clowns,' warning that rate hikes would negatively impact key U.S. industries. Despite this pressure, market expectations for a September Fed rate hike remain high, with nearly 60% odds, as indicated by the CME FedWatch Tool. The U.S. economy added 162,000 nonfarm jobs in August, exceeding expectations, and the unemployment rate held steady at 4.1%. Inflation, however, remains above the Fed's 2% target, with the all-items index at 3.4% for the past 12 months... 
