U.S. Treasury Secretary: AI Boom May Boost Productivity and Help Restrain Inflation

BlockBeats News, June 25th, U.S. Treasury Secretary Benson, in an interview with CNBC, expressed his hope that the Fed would maintain an "open mind" towards the inflationary dynamics following the reversal of Iran-related energy price hikes. Benson stated that the U.S. may be entering an economic environment characterized by high GDP growth without concurrent traditional inflationary pressures. He mentioned that Greenspan in the 1990s foresaw that office modernization and the internet could lead to non-inflationary growth, allowing the economy to continue its expansion. Benson believes that the U.S. has a significant opportunity to witness a similar scenario once again.

When asked whether the Fed still needs to be concerned about potential inflation and whether a rate cut may be possible this year or next year, Benson declined to comment. However, he believed that maintaining an open mind regarding the price or inflationary impact of the Iran conflict is necessary and observing the inflation performance after the subsiding of the related effects.

Benson also remarked that an open mind should be kept, suggesting that the AI boom could enhance productivity and bring about a deflationary effect, helping inflation return to the target level. He stated that he trusts Kevin Wash to choose the best path while fulfilling both the inflation mission and the growth mission. Benson also mentioned that Wash had a tough stance on inflation in his previous remarks.