{"id":16053,"date":"2026-11-13T16:38:58","date_gmt":"2026-11-13T16:38:58","guid":{"rendered":"https:\/\/sotnews.agency\/?p=16053"},"modified":"2026-11-13T16:38:58","modified_gmt":"2026-11-13T16:38:58","slug":"us-treasury-warns-against-rate-hikes-during-us-iran-war-energy-shock-us-israel-war-on-iran-news","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=16053","title":{"rendered":"US Treasury warns against rate hikes during US-Iran war energy \u2018shock\u2019 | US-Israel war on Iran News"},"content":{"rendered":"
\n
\n \t<\/i> Read Time:<\/span>3 Minute, 0 Second <\/div>\n\n <\/div>


\n<\/p>\n

\n

Despite Treasury\u2019s Scott Bessent\u2019s remarks, financial tracker CME Fed Watch forecasts rate hike in December likely.<\/em><\/p>\n<\/div>\n

\n
\n
<\/p>\n
\"\"<\/div>\n

<\/a><\/div>\n<\/div>\n

\n

Published On 13 Nov 2026<\/span>13 Nov 2026<\/span><\/p>\n<\/div>\n<\/div>\n

\n

US Treasury Secretary Scott Bessent has called on the Federal Reserve not to hike interest rates because of an \u201cenergy supply shock\u201d tied to the US-led conflict with Iran.<\/p>\n

\u201cI think the Fed should understand that this is an energy supply shock,\u201d while the underlying US economy is very strong, Bessent said in an interview on CNBC on Friday.<\/p>\n

\n

Recommended Stories <\/h2>\n

list of 4 items<\/span>end of list<\/span><\/section>\n

\u201cSo I think that to hike too much into an energy supply shock when it\u2019s coming down, these are very noisy numbers,\u201d he said. \u201cThe Fed\u2019s supposed to look into the future, not look in the rearview mirror.\u201d<\/p>\n

The central bank opted to maintain interest rates<\/a> during its last policy meeting, leaving them at 3.75 to 4 percent. CME FedWatch, which tracks the likelihood of monetary policy decisions, forecasts an 89.4 percent chance that rates will be raised to 4.00\u20134.25 percent at the next meeting, scheduled for December 9.<\/p>\n

Despite pressure from the White House to cut interest rates, the Federal Reserve has held them steady amid inflationary pressures stemming from the US-Israeli war on Iran<\/a>. Since the conflict began, the Fed has maintained rates five times and raised them once.<\/p>\n

Much of that pressure has come from rising energy prices. By September, energy prices had climbed 20.4 percent year over year. Although October\u2019s energy price data has since been released, the Labour Department was unable to collect data in October 2025 because of last year\u2019s government shutdown. As a result, it cannot provide a year-over-year comparison for October 2026.<\/p>\n

Bessent\u2019s remarks come amid a stronger-than-expected US jobs report, which bolsters the case for rate hikes. The US economy added 165,000 jobs in October, according to the Labour Department\u2019s release last Friday.<\/p>\n

\u201cI\u2019m not going to tell the Fed what to do. I am going to say they should have an open mind,\u201d Bessent said.<\/p>\n

The Fed made three rate cuts over the same period last year, he noted.<\/p>\n

\u201cAnd now to reverse just based on an energy supply shock, a reversal in a dramatic way isn\u2019t something that I would do if I were on the Fed. But I\u2019m not on the Fed.\u201d<\/p>\n

Feeling the cost<\/h2>\n

Bessent\u2019s remarks come as some top Fed officials are pushing for the opposite. On Tuesday, Fed Governor Christopher Waller said he planned to support a quarter-point increase at the Fed\u2019s December 8-9 meeting unless the core consumer price index \u2014 one of the central bank\u2019s key measures for assessing the rate of inflation \u2014 came in at 0.3 percent or more.<\/p>\n

\u201cIn that case, I believe a 50-basis-point hike in the policy rate should be considered at the December meeting,\u201d he said at a conference in London hosted by King\u2019s Business School and the Money Macro and Finance Society.<\/p>\n

The CPI report subsequently came out, showing a 0.4 percent monthly increase.<\/p>\n

Consumers are feeling the rising costs at the petrol pump, as prices are declining but remain high. The average price for a gallon of petrol is $3.87 ($1.02 per litre), down from $4.34 ($1.14 per litre)this time a month ago, but still well above the $2.98 ($0.79 per litre) price recorded on February 28, when the US and Israel first struck Iran.<\/p>\n<\/div>\n\n

\n
\n \n
\n \n \"Happy\"\n <\/a>\n
\n Happy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sad\"\n <\/a>\n
\n Sad <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Excited\"\n <\/a>\n
\n Excited <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sleepy\"\n <\/a>\n
\n Sleepy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Angry\"\n <\/a>\n
Angry<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n \n <\/div>\n <\/div>\n\n
\n \n \"Surprise\"\n <\/a>\n
Surprise<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n\n ","protected":false},"excerpt":{"rendered":"

Despite Treasury\u2019s Scott Bessent\u2019s remarks, financial tracker CME Fed Watch forecasts rate hike in December likely. Published On 13 Nov 202613 Nov 2026 US Treasury Secretary Scott Bessent has called on the Federal Reserve not to hike interest rates because of an \u201cenergy supply shock\u201d tied to the US-led conflict with Iran. \u201cI think the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[11],"tags":[],"class_list":["post-16053","post","type-post","status-publish","format-standard","category-international-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t