Treasury Secretary Bessent: Fed Chair Warsh Won't Face Pressure to Cut Rates

On May 29, 2026, U.S. Treasury Secretary Scott Bessent said newly installed Federal Reserve Chairman Kevin Warsh will not face political pressure to lower interest rates. Speaking at the Reagan National Economic Forum in California, Bessent stated he “100 percent” agrees with President Trump’s wish for Warsh's independence. Bessent, who had breakfast with Warsh this week, predicted the Fed would abandon forward guidance and return to “basic principles of accountability and credibility.” He noted that U.S. Treasury yields peaked on May 21, one day before Warsh’s swearing-in on May 22. Bond markets currently price a quarter-point rate hike this year. April consumer prices rose nearly 4% annually, while wholesale prices jumped 6%. The two-year yield stands 25 basis points above the Fed’s 3.5%–3.75% policy rate, though traders see only a 36% chance of a December hike.