Bessent Urges Fed to Keep 'Open Mind' on Interest Rates Amid AI-Driven Productivity Gains

U.S. Treasury Secretary Scott Bessent has urged Federal Reserve policymakers to keep an open mind on interest rates, citing potential productivity gains from artificial intelligence and deregulation.

Bessent made his comments on Fox News' Sunday Morning Futures, arguing that the current economic expansion is benefiting from tax cuts and deregulation under President Donald Trump. Elevated fuel prices linked to the conflict with Iran remain a source of pressure.

The Treasury Secretary pointed to AI-driven productivity gains as comparable to those seen during the internet boom in the 1990s, when Alan Greenspan was Federal Reserve chair. He argued that current economic gains are 'if not more substantial' than those seen during this period.