According to Bloomberg's report on the 27th, U.S. Treasury Secretary Steven Bovat said that Federal Reserve policymakers should maintain an 'open mind' regarding interest rates. He believes that advancements in productivity brought about by artificial intelligence and the relaxation of regulations will help control inflation in the United States.
According to reports, Besent made these statements while discussing the overall state of the U.S. economy. He said that the U.S. economy is booming, partly due to tax cuts and regulatory relaxations.
He said that Kevin Warsh, the Federal Reserve chairperson chosen by Trump, ‘understands very well’ that the U.S. economy is experiencing a growth that is ‘more significant’ than that during the internet boom in the 1990s, even possibly more significant.
The US Treasury Secretary said that Greenspan took a 'laissez-faire' attitude at that time. Therefore, 'both the Federal Reserve Board and policymakers should maintain an open mind, as this once again demonstrates the importance of deregulation.'
According to data released by the U.S. government on September 11, the U.S. Consumer Price Index excluding food and energy prices increased by 0.3% month-on-month in August, and by 2.4% year-on-year. A few days later, the Federal Reserve, under Wachst’s leadership, raised its benchmark interest rate for the first time since 2023.
Baisent argued that “core inflation has been very stable, and there has been a decline in recent months.”
