Besant: The Federal Reserve's cautious stance on the development of the Iran conflict is a wise move

ME News update: On April 14 (UTC+8), Jinsuo, local time Monday, U.S. Treasury Secretary Bessent said at the “Semafor World Economy” conference held in Washington, D.C. that during the Iran war, the Federal Reserve should “wait and see” before deciding whether to cut interest rates. On whether interest rates should be lowered, Bessent said: “It will ultimately be lowered. But I think we need to wait and see how the economy develops. But I believe that after January—during January and February—the economic performance is very strong.” Bessent said the current approach of the Federal Reserve to stand by and observe how the Iran conflict unfolds is “a wise move.” Bessent said: “If (the European Central Bank) raises (interest rates), I would be shocked. But what I want to say is that many European countries (such as the UK) and Asian countries are subsidizing demand, while we in the U.S. are not doing that.” Bessent said he believes the recent rise in prices will not be “included in inflation expectations,” and he believes current inflation is temporary. (Source: Jinsuo)