Bessent Backs Warsh Amid Rate Hike Uncertainty
Treasury Secretary Scott Bessent sent a signal of support for Federal Reserve Chair Kevin Warsh after the central bank's quarter-point rate hike. Appearing on CNBC's 'Squawk Box' on September 21, Bessent declined to endorse the increase but emphasized that he and President Donald Trump have 'great confidence' in Warsh.
Bessent noted that core inflation remains subdued, with much of the recent pressure concentrated in headline prices potentially linked to an energy supply shock. He suggested that the inflation picture may be less alarming beneath the surface.
In a significant move, Bessent separated the Fed chair from the decision itself, stating that he would not comment on whether he agreed with the rate hike. By doing so, he preserved Warsh's credibility while leaving the administration free to disagree with future policy.