US Treasury Secretary Scott Bessent has expressed confidence in new Federal Reserve Chair Kevin Wash and stated that President Donald Trump has given Wash the space to make independent decisions.

"He is very hawkish when talking about inflation," Bessent said during a program on Wednesday. He indicated his belief that Wash "will find the best path that balances inflation and the economy."

When asked whether he had discussed with Trump that the current moment might not be appropriate for interest rate cuts—something Trump has long called for—Bessent stated that Trump "has expressed full confidence in Kevin Wash, both publicly and privately."

Bessent predicted that for the remainder of the year, the US economy will accelerate without reigniting inflation. In a separate speech late Tuesday, he also forecast that price increases would moderate as tensions with Iran ease.

Wash chaired his first Federal Reserve policy meeting last week, where he joined other members of the Federal Open Market Committee in voting to hold interest rates steady, despite strong calls from Trump for cuts. As inflation has re-emerged, Fed policymakers have gradually shifted away from a bias toward easing, with many now seeing a rationale for raising borrowing costs in 2026.

During a Q&A session following a speech at the Economic Club of New York on Tuesday, Bessent remarked that Trump understands that "more governments have been destroyed by the bond market than by artillery." This comment clearly alluded to the political consequences of inflation driving up long-term borrowing costs. He added, "Therefore, I believe he has confidence that the Fed Chair will take the correct action."

"On the Fed, I heard a green light for rate hikes," wrote Neil Dutta, Head of Economic Research at Renaissance Macro Research, in a report summarizing Bessent's Tuesday remarks.