Bessent Seeks Fed Rate Flexibility Amid US Economic Boom

US Treasury Secretary Scott Bessent has called on the Federal Reserve to keep an 'open mind' when setting interest rates. The US economy, according to Bessent, is entering an acceleration phase with rising productivity and recent tax and deregulation measures supporting economic expansion.

Bessent pointed out that the country's GDP growth rate, estimated at 5.0% annualized by the Atlanta Federal Reserve's GDPNow model, is not driven by inflation, which remains relatively calm.

The Treasury Secretary believes that the current situation is similar to the technology boom of the 1990s and argued that the Fed should remain flexible in its interest rate decisions.