Bessent: the Fed must keep an ‘open mind’ on rates — AI-driven productivity and deregulation will keep inflation in check

U.S. Treasury Secretary Scott Bessent said Sunday that Federal Reserve policymakers must keep an “open mind” on interest rates, as the productivity benefits of artificial intelligence and deregulation will keep inflation under control, as Barron’s reports.

“The disruptive aspect of what this administration has done is one of the things that is powering this growth and will make it sustainable and non-inflationary,” Bessent declared in an interview on Fox News’ “Sunday Morning Futures.”

The Treasury Secretary compared the current situation to the 1990s under former Fed chair Alan Greenspan, who “let it ride” as the economy saw productivity benefits from office equipment and the internet. “We are probably getting the same benefits, if not more fundamental ones now,” he added.

Bessent’s comments come after the Fed’s decision, which raised interest rates on September 16 — the first time since 2023 — as the debate over the future course of U.S. monetary policy intensifies.