Bessent Outlines Reasons the Fed Might Want to Avoid a Rate Hike -- WSJ

By Jessica Coacci

Treasury Secretary Scott Bessent said he is not going to speculate on what the Federal Reserve might do at its September interest rate meeting.

But he did list a few reasons holding rates in place might make sense. "We've seen a supply shock, and traditionally you don't raise [rates]...unless you see second or third-order effects," Bessent said in an interview on CNBC.

Bessent said core inflation has remained very restrained, and there will be a productivity boom on the other side of the AI-buildout.

After Fed Chairman Kevin Warsh's debut speech at Jackson Hole Friday, odds for a September rate hike rose to nearly 60%, according to CME's FedWatch tool. They recently stood at about 66%.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

August 31, 2026 11:38 ET (15:38 GMT)