Investing.com -- U.S. Treasury Secretary Scott Bessent said Monday the Federal Reserve should wait before lowering interest rates as oil prices surge above $100 a barrel due to the ongoing war in Iran.

"Do I think rates should be lowered? Eventually. I think now that we have to wait and see," Bessent told Semafor Editor-in-Chief Ben Smith at the Semafor World Economy conference in Washington, DC.

The comments mark a shift from Bessent's earlier position. In January, he said rate reductions were "the only ingredient missing for even stronger economic growth" and urged Fed Chair Jerome Powell to hasten cuts.

Bessent said the Fed is "doing the right thing by sitting and watching" how the Iran conflict plays out. The economy was "very strong" coming out of January and February, he added.

The U.S. government reported Friday that inflation rose three times faster in March than in February amid surging oil and gas costs. Inflation excluding food and energy rose slightly less than forecasters anticipated.

Bessent said he does not believe recent price increases will permanently alter consumer views of the economy. "If ever there was 'Team Transitory,' it's this," he said. "I don't believe this is going to get embedded into inflation expectations."

Fed funds futures pricing showed the central bank was expected to hold rates steady this year, with minimal possibility of a hike.