WASHINGTON D.C. – US Treasury Secretary Scott Bessent asked the Senate to quickly approve the new head of the Federal Reserve (The Fed). He believes that choosing a leader fast is the only way to keep the economy stable while global markets are worried about China.
Why Does This Matter?
The Federal Reserve controls interest rates and money in the US. Without a clear leader, investors feel nervous. Secretary Bessent says the world needs a "strong anchor" because prices are still high and the global economy is changing fast in 2026.
The "Tech War" with China
The main reason for the tension isn't just about money—it’s about technology:
Computer Chips : China is trying to make its own high-tech chips so it doesn't have to rely on the US. In response, the US is making it harder for China to buy American technology.
Artificial Intelligence (AI) : Both countries are racing to be the leader in AI. This competition is changing how businesses work and how countries defend themselves.
How This Affects the World
This situation creates a few big problems for everyone:
Split Markets : Some countries might start using only Chinese technology, while others use only American tech. This makes it more expensive for companies to sell products everywhere.
Market Swings : Because of the uncertainty at the Fed and the fight with China, the prices of stocks, gold, and even Bitcoin can go up and down very quickly.
Simple Summary : The US government wants to fix its internal leadership quickly so it can better handle the competition with China. For people who trade or invest, this means we should expect a bumpy ride in the markets until a new Fed leader is officially in charge.