Bessent on CNBC: 'Rates Should Come Down' on Other Side of Iran Conflict
By Jessica Coacci
Treasury Secretary Scott Bessent said oil markets are going to be more supplied than they previously were once the U.S. is on the other side of the conflict in the Middle East.
In an interview on CNBC Monday, Bessent said the U.S. has one of the highest correlations ever between 10- and 30-year Treasury bonds, crude oil prices and crack spreads.
"Once we get on the other side of this conflict, which we will, I think the oil markets are going to be more supplied than they previously were, and rates should come down," Bessent said.
Regarding the Federal Reserve's decision to raise interest rates at its meeting last week, Bessent didn't weigh in on whether he agreed with the decision, but said he and President Trump have great confidence in Chairman Kevin Warsh.
"Core inflation has been very quiescent...Everything is in the headline inflation," Bessent said.
Bessent also reiterated his view that AI labs should be held responsible for safety incidents within the technology and won't be given a liability shield from the government, and has formalized U.S.-China AI dialogs following his meeting with China's Vice Premier He Lifeng this weekend.
"We've agreed to meet again, probably in two months in Shenzhen," Bessent said.
Bessent's comments come ahead of a bilateral summit between President Trump and China's President Xi Jinping.
Write to Jessica Coacci at jessica.coacci@wsj.com
(END) Dow Jones Newswires
September 21, 2026 09:38 ET (13:38 GMT)
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