Economy

Published Wed, Oct 28 2026 4:00 PM EDT Updated Wed, Oct 28 2026 5:06 PM EDT

Treasury Secretary Scott Bessent said Wednesday that further Federal Reserve rate hikes wouldn't necessarily be a mistake.

After CNBC's Brian Sullivan asked if rate increases in the future would constitute a monetary policy error, Bessent responded: "That's not necessarily so."

Bessent's comments came hours after the Fed announced it would keep interest rates unchanged at its October gathering, as the market widely expected.

Bessent is a key confidant of President Donald Trump, who has repeatedly called for lower interest rates. Trump pressured Fed Chairman Kevin Warsh's predeccesor, Jerome Powell, over the issue during Powell's final months at the helm of the central bank.

But Bessent said Wednesday that both he and Trump believe Warsh is doing well and can strike a balance between ensuring full employment and stable prices.

"I think Chair Warsh is off to a great start," Bessent said.…