U.S. Treasury Secretary Scott Bessent said Federal Reserve policymakers should keep an “open mind” on interest rates, pointing to potential productivity gains from artificial intelligence and deregulation.
Bessent argued that greater use of AI could boost productivity and increase economic output, while deregulation could encourage businesses to invest and expand. Higher productivity and stronger supply could help limit inflation pressures, even as the U.S. economy continues to grow.
His comments suggest the Fed should avoid assuming that strong economic growth will automatically lead to higher inflation and interest rates.
For markets, the remarks reinforce the debate over whether AI-driven productivity gains could give the Fed more room to keep rates lower if inflation continues to moderate.
