US Treasury warns against rate hikes during US-Iran war energy 'shock'

US Treasury Secretary Scott Bessent urged the Federal Reserve to avoid further interest rate hikes, attributing current inflationary pressures to an 'energy supply shock' stemming from the US-Iran conflict. Bessent argued that the underlying US economy remains strong and that the Fed should look forward rather than reacting to 'noisy numbers' from the energy sector. This statement comes as financial trackers forecast a high probability of a December rate hike by the Fed.