Bessent Urges Fed to Keep Open Mind on Rates Amid AI Productivity Gains

Treasury Secretary Scott Bessent is urging Federal Reserve policymakers to keep an 'open mind' on interest rates, citing productivity gains from artificial intelligence and deregulation.

Bessent made his comments on Fox News, framing the US economy as thriving under President Trump's leadership, with tax cuts and deregulation contributing to its strength.

However, he acknowledged that elevated fuel prices tied to the Iran conflict are weighing on voters ahead of November's midterm elections.

Bessent compared the current economic gains to those seen during Alan Greenspan's tenure in the 1990s internet boom, when Greenspan 'let things run.'

The Treasury Secretary said Fed Chairman Kevin Warsh is aware of the similarities between the two periods and should adopt a similarly open-minded stance.