Treasury Secretary Scott Bessent said Monday that the administration has no plans to intervene in financial markets and may not have the authority to do so even if it wanted to.
In an interview with CNBC, Bessent addressed rumors that the Treasury Department and other government agencies could intervene to lower oil prices.
Presidents including Trump have authorized the release or exchange of loans from the Strategic Petroleum Reserve during times of stress in the energy sector, but entering futures markets or using other mechanisms would be unprecedented.
The idea would be for the Treasury Department to intervene in the oil futures market and essentially trade against rising prices. Such a move would likely be controversial, as it would target financial markets rather than the physical supply of oil.
“That rumor is out there,” Bessent told CNBC’s Brian Sullivan in an interview on “Squawk Box.” “If you have big, dynamic price changes, that happens all the time. We don’t do that.”
Asked if this was something that was under consideration, Bessent said, “I don’t know under what authority or sponsorship.”
Oil prices eased on Monday, with U.S. crude trading 1.9% lower at $96.86 per barrel and international benchmark Brent crude up slightly at $103.15.
