U.S. Treasury Secretary Scott Bessent said Federal Reserve policymakers should maintain an “open mind” on interest rates, arguing that productivity gains driven by artificial intelligence and deregulation will help bring U.S. inflation under control.
Commenting on the economy, Bessent noted that the U.S. has thrived under President Trump’s leadership, partly due to tax cuts and deregulation, despite rising fuel prices caused by conflict with Iran, which is putting pressure on American voters ahead of the November midterm elections.
On Fox News’ “Sunday Morning Futures,” Bessent stated that Kevin Warsh, Trump’s nominee for Fed chair, “is very clear” that the U.S. economy is experiencing growth similar to what Alan Greenspan achieved during the 1990s internet boom—indeed, “even more significant.”
Bessent added that Greenspan “let things unfold naturally,” and emphasized that “the Fed board and the public should keep an open mind—this is a deregulation issue.” He noted that core inflation has remained “very calm” and has actually declined over recent months.
According to government data released on September 11, consumer prices in the U.S. rose 0.3% in August excluding food and energy, with a year-over-year increase of 2.4%.
When asked about China’s role in the Iran conflict, Bessent said he expects Iran’s oil exports to China will soon cease, increasing pressure on Iran to reach an agreement reopening the Strait of Hormuz.
