Treasury Secretary Confident Core Inflation Will Fall, Calls for Fed Rate Cuts

Bessent says Fed will need to cut rates despite Iran war impact on economy

Apr. 14, 2026 at 5:09pm

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A dynamic composition of intersecting triangles and rectangles in shades of blue, red, and yellow, conceptually representing the complex interplay of monetary policy decisions and their impact on the broader economy.As the White House and Federal Reserve clash over interest rate policy, a geometric visual metaphor captures the abstract forces shaping the nation's economic future.Washington Today

U.S. Treasury Secretary Scott Bessent expressed confidence that core inflation will continue to decline in the United States, despite the ongoing Iran war. Bessent reiterated his call for the Federal Reserve to cut interest rates, stating that it makes sense for President Trump's nominee, Kevin Warsh, to lead the next cycle of monetary adjustments.

Why it matters

Bessent's comments signal the administration's continued pressure on the Fed to lower rates, even as the central bank may want to observe economic developments related to the Iran conflict before making policy changes. This reflects an ongoing tension between the White House and the Fed over the appropriate monetary policy stance.

The details

Bessent said he was "quite confident" that core inflation would keep going down in the U.S., despite the impact of the Iran war. He repeated his call for the Fed to cut interest rates, adding that it made sense for Kevin Warsh, Trump's nominee for Fed chair, to lead the next round of monetary adjustments. Bessent also indicated the administration would prefer Warsh to take over the top Fed job when Chair Jerome Powell's term ends in May, rather than having Powell stay on.

  • Bessent made these comments on April 14, 2026.

The players

Scott Bessent

The current U.S. Treasury Secretary, appointed by President Trump.

Kevin Warsh

President Trump's nominee to be the next Federal Reserve chair.

Jerome Powell

The current Federal Reserve chair, whose term is set to expire in May 2026.

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What they’re saying

“We want Kevin Warsh in as soon as possible.”

— Scott Bessent, U.S. Treasury Secretary

What’s next

The Senate will need to confirm Kevin Warsh's nomination as the next Federal Reserve chair before he can take over the role from Jerome Powell.

The takeaway

The ongoing tension between the White House and the Federal Reserve over monetary policy continues, with the Treasury Secretary pushing for rate cuts despite the potential economic impacts of the Iran war. This sets the stage for a high-stakes confirmation battle over the next Fed chair.