US Treasury Secretary: No need to raise interest rates over Iran war energy crisis

US Treasury Secretary Scott Beisent said today that the Federal Reserve should remain flexible and not raise interest rates in response to the "energy supply crisis" stemming from the war on Iran.

In an interview with CNBC, Beisent stated, "I think it is essential for the Federal Reserve to recognize that this is an energy supply crisis," but added that the underlying US economy remains very strong.

He continued, "Therefore, I believe that raising interest rates excessively during an energy supply crisis, especially as the crisis is receding, would be based on highly misleading figures," noting that "the Fed should look ahead, not in the rearview mirror."

The Treasury Secretary added, "I am not going to dictate to the Fed what it should do. I will just say that it should keep an open mind," pointing out that the Fed cut interest rates three times during the same period last year.

He concluded, "To now shift toward sharply tightening monetary policy simply because of an energy supply crisis is not something I would do if I were a member of the Federal Reserve. But I am not a member."