US Treasury Secretary: AI Boom May Boost Productivity and Help Curb Inflation

BlockBeats reported that on June 25, US Treasury Secretary Bessent said in an interview with CNBC that he hopes the Federal Reserve will keep an “open mind” regarding the inflation pattern after the reversal of Iran-related energy price increases. Bessent noted that the US may be entering an environment of high GDP growth, but traditional inflation may not spread synchronously. He mentioned that in the 1990s, Greenspan foresaw that office modernization and the internet could result in non-inflationary growth and allowed for continued economic expansion. Bessent believes there is a strong chance the US could see a similar situation again.

When asked whether the Federal Reserve still needs to worry about potential inflation, and whether it might cut interest rates this year or next, Bessent said he would not comment on that. However, he believes an open mind is required regarding price or inflation impacts from the Iran conflict, and to monitor inflation performance once related effects subside.

Bessent also said it is necessary to remain open-minded, suggesting the AI boom could increase productivity and have a disinflationary effect, thereby helping inflation return to target levels. He stated he trusts that Kevin Walsh will choose the best path that fulfills both the inflation and growth mandates. Bessent also noted that Walsh had previously taken a tough stance when discussing inflation.