Trump Administration Pivot on Rate Cuts Delayed by Iran War Energy Costs

Americans paid higher prices at the pump as inflation spiked nine-tenths of a percentage point to 3.3% in March. This spike was partially due to rising energy costs following the closure of the Strait of Hormuz during the war in Iran. The Federal Reserve is maintaining current interest rates of 3.50% to 3.50% to 3.75%. Treasury Secretary Scott Bessent said the Federal Reserve is doing the right thing by sitting and watching to see how the war in Iran affects the U.S. economy before cutting rates. This marks a pivot in the way the Trump administration is approaching interest rates, after historically putting pressure on the Federal Reserve to lower rates.