Bessent Defends Warsh as Trump Seeks Lower Rates

Treasury Secretary Scott Bessent expressed confidence in Federal Reserve Chair Kevin Warsh on Monday, saying both he and President Donald Trump have 'great confidence' in the Fed chief despite Trump's calls for lower interest rates.

Bessent told CNBC's Squawk Box that he has faith in Warsh to balance the inflation mandate versus the growth mandate. The Federal Open Market Committee voted 12-0 on Sept. 16 to raise the federal funds target range to 3.75%-4%, its first increase since 2023.

Warsh had previously signaled concern about persistent price pressures, and after the vote, he said 'The plain fact is that inflation is too high, and has been for too long.' Bessent argued that core inflation has been 'very quiescent' and emphasized the importance of looking at headline inflation.

President Trump criticized the Fed's decision and continued calling for substantially lower rates. The Fed may tighten again, with 16 out of 18 policymakers projecting at least one additional increase this year.