Bessent urges Fed open mind on rates, citing AI and deregulation as inflation curb
US Treasury Secretary Scott Bessent urged the Federal Reserve to maintain an open mind on interest rates, arguing that productivity gains from artificial intelligence and deregulation will help contain inflation. Speaking on Fox News' Sunday Morning Futures, Bessent compared current growth to the 1990s internet boom and noted core inflation has declined. The Fed raised rates in September 2026 for the first time since 2023, while other Fed officials signaled persistent inflation concerns.
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Bessent Urges Fed Open Mind on Rates, Cites AI and Deregulation as Inflation Help
U.S. Treasury Secretary Scott Bessent said on Sunday that Federal Reserve policymakers should maintain an 'open mind' on interest rates, arguing that productivity gains from artificial intelligence (AI) and deregulation will help control inflation. In a televised interview, Bessent stated that the U.S. economy is thriving under President Donald Trump due to tax cuts and deregulation, despite high fuel prices from conflict with Iran pressuring voters ahead of the November midterm elections. He compared the current economic growth to the 1990s internet boom under former Fed Chair Alan Greenspan, saying the situation is 'even more significant.' Bessent noted that core inflation has been 'very calm' and has declined in recent months. However, other Fed officials, including Cleveland Fed President Beth Hammack, Kansas City Fed President Jeffrey Schmid, and New York Fed President John Williams, have signaled persistent inflation concerns and the possibility of further rate hikes. The Fed raised its benchmark interest rate in September 2026 for the first time since 2023, following data showing core CPI inflation at 2.4% year-over-year in August.
Read sourceBessent Urges Fed Openness on Inflation, Cites AI Productivity Gains as Price Pressure Relief
US Treasury Secretary Bessent called on the Federal Reserve to maintain an 'open attitude' when assessing inflation and interest rate paths, arguing that productivity gains from artificial intelligence and deregulation could expand the US economy's supply capacity and help curb price pressures. His remarks come as the Fed restarted rate hikes this month, raising the federal funds rate by 25 basis points to 3.75%-4.00%, the first increase since 2023. Bessent distinguished energy price shocks from broader core inflation, noting that core inflation, excluding food and energy, has been 'very calm' and has actually declined in recent months. He cited former Fed Chair Alan Greenspan's policy approach during a period of rapid productivity growth, suggesting the current Fed should allow the economy to expand amid technological advancements. Bessent emphasized that the Fed should consider supply-side changes from tax cuts, deregulation, and productivity improvements when judging potential inflationary pressures, rather than solely focusing on demand-side factors. His stance reflects a more cautious view from the Treasury on further tightening, contrasting with recent Fed officials' emphasis on inflation risks and the need for restrictive monetary policy.
Read sourceBessent Urges Fed Openness on Inflation, Cites AI Productivity as Price Pressure Relief
US Treasury Secretary Scott Bessent called on the Federal Reserve to maintain an 'open attitude' when assessing inflation and interest rate paths, arguing that productivity gains from artificial intelligence and deregulation could expand the US economy's supply capacity and help contain price pressures. Speaking as the Fed resumed rate hikes in March, Bessent cited former Fed Chair Alan Greenspan's policy approach during periods of rapid productivity growth. He emphasized that core inflation, excluding food and energy, has been 'very calm' and has actually declined in recent months, despite energy price shocks from Middle East tensions. Bessent compared the current AI-driven productivity surge to the internet-driven productivity boom of the 1990s, suggesting that technological progress and regulatory changes should be factored into assessments of whether the economy is overheating. The remarks come after the Fed raised its federal funds rate target by 25 basis points to 3.75%-4.00%, its first hike since 2023, as some officials continue to stress inflation risks. Bessent's comments signal Treasury caution about further tightening and a desire to preserve policy space for potential disinflation and higher potential growth.
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Bessent Urges Fed to Keep Open Attitude on Inflation Outlook, Cites AI and Deregulation
U.S. Treasury Secretary Scott Bessent has urged Federal Reserve policymakers to maintain an 'open attitude' on interest rates, arguing that productivity gains from artificial intelligence and deregulation measures will help suppress inflation in the United States. In comments reported by Xinhua Finance on September 28, Bessent stated that Fed Chair nominee Kevin Warsh, appointed by former President Trump, is 'fully aware' that the U.S. economy is achieving growth results comparable to or even 'more remarkable' than the internet boom of the 1990s. Bessent drew a parallel to former Fed Chair Alan Greenspan, who 'let the economy develop' during that period, and stressed that the Fed board and policymakers should remain open-minded given the deregulatory factors at play. He also noted that core inflation 'has been very stable' and has actually declined over the past few months. The remarks reflect ongoing debate about the trajectory of monetary policy amid technological change and regulatory shifts.
Read sourceBessent Urges Fed Open-Mindedness on Rates, Says AI and Deregulation Can Curb Inflation
U.S. Treasury Secretary Scott Bessent stated that Federal Reserve policymakers should maintain an 'open mind' on interest rates, arguing that productivity gains from artificial intelligence (AI) and deregulation will help suppress inflation. Speaking on a program, Bessent claimed the U.S. economy is booming under President Trump, aided by tax cuts and deregulation, despite high fuel prices from conflict with Iran pressuring voters ahead of the November midterm elections. He praised Trump's Fed chair nominee Kevin Warsh, comparing the current economic growth to the 1990s internet boom under Alan Greenspan, who 'let the economy run.' Bessent noted that core inflation has been 'very steady' and declined in recent months, though government data showed August core CPI rose 0.3% month-over-month and 2.4% year-over-year. The remarks highlight a key debate for investors: if AI and deregulation boost economic capacity, the Fed may tolerate strong growth without aggressive rate hikes, potentially benefiting stocks and risk assets. However, persistently high energy prices from geopolitical conflicts could keep inflation elevated, pressuring bond yields and rate-sensitive sectors.
Treasury Secretary Bessent Urges Fed Open Mind on Rates, Cites AI and Deregulation for Inflation
U.S. Treasury Secretary Scott Bessent stated that Federal Reserve policymakers should maintain an 'open mind' on interest rates, arguing that productivity gains from artificial intelligence (AI) and deregulation will help curb inflation. Speaking on a program, Bessent said the U.S. economy is thriving under President Trump, partly due to tax cuts and deregulation, though fuel prices from conflict with Iran are pressuring voters ahead of the November midterm elections. He praised Trump's Fed chair pick, Kevin Warsh, as 'very clear' that current economic growth rivals or exceeds the 1990s internet boom under Alan Greenspan, who 'let the economy run.' Bessent urged the Fed to be open-minded about deregulation's impact. For investors, the comments highlight a key debate: if AI and deregulation boost economic capacity, the Fed may tolerate strong growth without aggressive rate hikes, potentially benefiting stocks and risk assets. However, persistently high energy prices from the Iran war and Ukrainian attacks on Russian energy infrastructure could keep inflation elevated, pushing up Treasury yields and pressuring rate-sensitive sectors. August data showed core CPI rising 0.3% month-over-month and 2.4% year-over-year, after which the Fed raised rates for the first time since 2023. Bessent claimed core inflation has been 'very steady' and declined in recent months.
Read sourceBessent Urges Fed to Keep Open Mind on US Inflation Outlook, Citing AI and Deregulation
US Treasury Secretary Scott Bessent urged Federal Reserve policymakers to maintain an 'open mind' on interest rates, arguing that artificial intelligence-driven productivity gains and deregulation under President Trump will help contain inflation. Speaking on Fox News' 'Sunday Morning Futures,' Bessent said the US economy is thriving due to tax cuts and deregulation, despite rising fuel prices from the Iran conflict affecting voter sentiment ahead of the November midterm elections. Bessent praised Trump's Fed chair nominee Kevin Warsh, comparing the current economic situation to the 1990s internet boom under Alan Greenspan, and urged the Fed to let things run their course. He noted that core inflation has been 'very steady' and declined in recent months. Bessent also predicted that China would soon stop buying Iranian oil, increasing pressure on Iran to negotiate reopening the Strait of Hormuz. The article references August 2026 core CPI data showing a 0.3% monthly increase and 2.4% annual rise, and notes the Fed's first rate hike since 2023 under Warsh.
Read sourceTreasury Secretary Bessent Urges Fed to Keep Open Mind on Rates, Cites AI and Deregulation as Inflation Help
US Treasury Secretary Scott Bessent stated on Sunday that Federal Reserve policymakers should maintain an 'open mind' on interest rates, arguing that artificial intelligence and deregulation are helping to control inflation. In a televised interview, Bessent said the US economy under President Donald Trump is thriving due to tax cuts and deregulation, despite high fuel prices from conflict with Iran pressuring voters before the midterm elections. He praised Trump's chosen Fed Chair Kevin Warsh, comparing current economic growth to the 1990s internet boom under Alan Greenspan, who 'let things take their natural course.' Bessent noted that core inflation has been 'very calm' and has actually declined in recent months, even as government data showed August core CPI rising 0.3% month-over-month and 2.4% year-over-year. However, other Fed officials, including Cleveland Fed President Beth Hammack and Kansas City Fed President Jeffrey Schmid, have signaled continued hawkishness, warning that inflation remains above the 2% target and that further rate hikes may be needed.
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