The Trump administration is preparing to announce a new nominee for Chair of the Federal Reserve within weeks, according to U.S. Treasury Secretary Scott Bessent. In a wide-ranging interview with Bloomberg, Bessent outlined not only plans for the Fed's leadership but also his views on inflation, tariffs, and cryptocurrency regulation.


🔹 New Fed Chair Could Be Named Soon

Bessent confirmed that the White House may announce the next Fed Chair before October, with the possibility of taking office as early as January 2026. However, it’s also possible that the nominee could step into a vacant seat before then. He emphasized that "there’s no reason to create confusion" and confirmed that current Fed officials are also under consideration.


🔹 Sharp Criticism of Powell’s Fed

Bessent didn’t hold back when criticizing Fed Chair Jerome Powell, stating that the central bank “made a massive mistake in 2022” and is now just “staring at its feet.” He dismissed tariff-driven inflation as a myth, claiming any resulting price increase would be a one-time adjustment.

When asked if he personally wants the job, Bessent replied, “I’ll do what the President wants,” but added that he already has “the best job in Washington.”


🔹 Tax Reform and Deficit Focus

As the Senate debates the Republican tax and spending bill, Bessent expects the legislation—dubbed the “big, beautiful bill”—to land on President Trump’s desk by July 4. He noted the plan targets reductions in both the deficit-to-GDP and debt-to-GDP ratios.


🔹 Trade Talks Under Pressure

Bessent confirmed that July 9 is the deadline for finalizing trade agreements with 18 major partners. If negotiations fail, the April 2 tariffs may be reinstated. He described the current discussions as an “all-out push” to reduce tariffs and eliminate trade barriers. However, tariffs on lumber, which impact housing, are still under review.


🔹 Stablecoins as a Strategic Asset

On crypto, Bessent confirmed that the Genius Act—a bill focused on regulating stablecoins—has passed the Senate and is now awaiting approval in the House. He aims for final passage by mid-July. He believes U.S.-regulated stablecoins backed by government bonds could play a critical role in the global financial system.

“Would you rather have a private stablecoin backed by U.S. Treasuries and regulated to U.S. standards,” he asked, “or an ECB coin that can be shut off?” He answered himself: “Everyone will choose the U.S. private sector, every day, all day.”


🔹 Bonds, Inflation, and Yield Curve Outlook

Bessent also commented on long-term bond issuance, saying now is not the time to lock in higher rates, which would’ve made more sense in 2021 or 2022. He expects bond yields to decline further, citing “very, very mild inflation.” While he refrained from commenting on Fed policy, he noted that the U.S. remains the only major bond market with 10-year yields lower than global peers.

Finally, he rejected the CBO’s 1.8% growth forecast as pessimistic: “Maybe that’s valid under Democratic administrations,” he quipped. “But this plan returns 100% of the spending cuts and deregulation. We saw what happened in Trump 1.0—we can do it again.”



#Fed , #FederalReserve , #Stablecoins , #crypto , #Regulation

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