Bessent sees US economic slowdown in Q2 2026 amid war

US Treasury Secretary Scott Bessent said he expects a slowdown in US economic growth during the second quarter due to the repercussions of the war with Iran. However, he confirmed that the economic fundamentals remain strong, with expectations of a recovery in the coming period.

In an interview with CNBC on Wednesday, Bessent explained that oil prices do not appear to be negatively impacting inflation expectations, noting that economic indicators remain positive and reflect the resilience of economic activity.

The Treasury Department will closely monitor gasoline prices to ensure consumers are not burdened with unjustified increases, said Bessent, stressing that any decline in oil prices should be quickly reflected in fuel costs at the same pace as increases.