Bessent Warns Fed to Keep Open Mind on US Inflation Outlook

Treasury Secretary Scott Bessent urged Federal Reserve policymakers to keep an 'open mind' on interest rates, citing potential productivity gains from artificial intelligence and deregulation that could help control US inflation.

Bessent framed his comment in the context of a thriving US economy under President Donald Trump, partly due to tax cuts and deregulation. However, elevated fuel prices driven by the conflict with Iran have weighed on voters ahead of the November midterm elections.

The comments come as policymakers consider their next move on interest rates amid rising inflation concerns. Bessent's 'open mind' comment suggests that some officials may be cautious about raising rates too quickly.