Bessent Sees AI-Boosted Productivity as Inflation Containment Tactic

Treasury Secretary Scott Bessent has urged Federal Reserve policymakers to keep an open mind regarding interest rates, citing productivity gains from artificial intelligence and deregulation as key factors that will help contain US inflation.

Bessent emphasized the country's economic growth under President Donald Trump, attributing it partly to tax cuts and deregulation. However, he acknowledged elevated fuel prices driven by the conflict with Iran are weighing on voters ahead of the November midterm elections.

The Treasury Secretary framed his comments in the context of a thriving US economy, despite challenges posed by rising fuel costs. He expressed confidence that productivity gains will help mitigate inflationary pressures.