Bessent Warns Fed to Keep 'Open Mind' on Inflation Amid Productivity Gains

Treasury Secretary Scott Bessent urged Federal Reserve policymakers to keep an 'open mind' on U.S. inflation outlook, citing productivity gains from artificial intelligence and deregulation as key factors that will help control inflation.

Bessent made his comments in the context of a thriving U.S. economy under President Donald Trump's leadership, which he attributed partly to tax cuts and deregulation.

The conflict with Iran has driven up fuel prices, but Bessent argued that core inflation has been 'very quiescent' and actually dropped over the past few months.