🚨 BESSENT CALLS FOR THE FED TO BE MORE “OPEN” ON INTEREST RATES
U.S. Treasury Secretary Scott Bessent said the Fed should keep an open stance on interest rates, as AI and regulatory easing could boost productivity and help rein in inflation.
Bessent argued that the U.S. economy has productivity-growth drivers similar to—possibly even larger than—the Internet boom of the 1990s.
Personal view:
What’s noteworthy here isn’t that Bessent directly asked the Fed to cut rates, but rather the way he brings AI and productivity into the monetary policy narrative.
If AI truly helps businesses increase output without creating significant additional cost pressures, the Fed could have more room to sustain growth without tightening monetary policy too aggressively.
However, this is still more of an expectation than clearly proven data in the short term. The Minneapolis Fed also noted that the impact of AI on productivity and inflation remains uncertain, while investment in AI infrastructure could simultaneously add pressure on demand and interest rates.
As for crypto, I’ll be watching the reaction in bond yields and interest-rate expectations more than just this statement. If the market starts pricing in a less hawkish Fed, that could be a supportive factor for risk assets.
👇 HOT COIN TRADES HERE 👇
$QNT
$SEI
$PUMP
U.S. Treasury Secretary Scott Bessent said the Fed should keep an open stance on interest rates, as AI and regulatory easing could boost productivity and help rein in inflation.
Bessent argued that the U.S. economy has productivity-growth drivers similar to—possibly even larger than—the Internet boom of the 1990s.
Personal view:
What’s noteworthy here isn’t that Bessent directly asked the Fed to cut rates, but rather the way he brings AI and productivity into the monetary policy narrative.
If AI truly helps businesses increase output without creating significant additional cost pressures, the Fed could have more room to sustain growth without tightening monetary policy too aggressively.
However, this is still more of an expectation than clearly proven data in the short term. The Minneapolis Fed also noted that the impact of AI on productivity and inflation remains uncertain, while investment in AI infrastructure could simultaneously add pressure on demand and interest rates.
As for crypto, I’ll be watching the reaction in bond yields and interest-rate expectations more than just this statement. If the market starts pricing in a less hawkish Fed, that could be a supportive factor for risk assets.
👇 HOT COIN TRADES HERE 👇
$QNT
$SEI
$PUMP
