Bessent Warns Fed to Keep Open Mind on Interest Rates Amid Thriving Economy

Treasury Secretary Scott Bessent is urging Federal Reserve policymakers to keep an 'open mind' when it comes to interest rates. He believes that productivity gains from artificial intelligence and deregulation will help keep US inflation in check.

Bessent made these comments on September 27, 2026, framing them in the context of a thriving US economy under President Donald Trump's administration. The economy has been boosted by tax cuts and deregulation, even as elevated fuel prices due to the conflict with Iran weigh on voters ahead of November's midterm elections.

Bessent emphasized that Fed Chairman Kevin Warsh is 'well aware' of these factors and will take them into account when making decisions about interest rates.