Treasury Secretary Scott Bessent urged the Federal Reserve to hold off on cutting interest rates for now, especially given the uncertainty surrounding the ongoing Iran war.

Speaking in an interview on Monday with Semafor Editor-in-Chief Ben Smith, Bessent said the Fed is “doing the right thing by sitting and watching” how the conflict plays out. "US President Donald Trump has spent much of his second administration lobbying for the central bank to slash interest rates."

The U.S. economy was “very strong” in January and February, he noted, pointing to a solid performance in January and February, according to the report.

Gas Price Spike Would Not Alter Inflation Expectations

Bessent said he is confident that recent price increases would not permanently alter how consumers view the economy. Per the latest data, annual inflation jumped to the highest level last month in almost two years. The Consumer Price Index shows that consumer prices climbed 3.3% year-over-year in March, up from 2.4% in February, driven by a record increase in prices at the pump.

On a month-over-month basis, consumer prices rose 0.9%, marking the biggest monthly CPI jump in nearly four years. Excluding food and energy, inflation rose just 0.2% month-over-month and 2.6% year-over-year, indicating that underlying inflation remained under control.

U.S. gas prices spiked 21.2% from February and topped $4 per gallon in March for the first time in more than three years. This marks the biggest monthly increase since the government started tracking the figures in 1967. United States Gasoline ETF , which allows investors to make a direct play on the daily price movements of gasoline, spiked about 42% in March.

Benzinga Edge Stock Rankings indicate that UGA maintains strong trends in the short, medium and long terms, with a strong Momentum score in 92th percentile.