Treasury Secretary Scott Bessent signals rate cut delays

Borrowers and investors may face prolonged borrowing costs as U.S. Treasury Secretary Scott Bessent advocates for a "wait-and-see" stance on interest rate cuts. The Federal Reserve may delay rate cuts to prevent inflation expectations from becoming unanchored. This caution is driven by geopolitical uncertainty and rising energy prices linked to the Iran conflict, which have increased headline inflation. Bessent stated that while recent inflation pressures are unlikely to become embedded in longer-term expectations, policymakers must evaluate whether these energy-driven price pressures feed into wages and core inflation. The U.S. economy entered this geopolitical shock from a position of resilience, with robust economic conditions through January and February.