U.S. Treasury Secretary Scott Bessent's recent activities have focused on monetary policy reform, financial deregulation, and combating illegal capital flows, while actively participating in the selection of the Federal Reserve Chair. Here is a summary of the core dynamics:
1. Federal Reserve Policy Statements Draw Attention
On December 23, Bessent stated in an All-In Podcast interview that once U.S. inflation sustainably returns to 2%, the Federal Reserve's 2% inflation target should be reevaluated, suggesting a shift to a "range-based" approach (such as 1.5%-2.5% or 1%-3%) to provide more flexibility. He emphasized the need to "anchor the target first, then discuss the range."
On December 24, Bessent confirmed that the government is interviewing candidates for the Federal Reserve Chair, seeking leaders who can "shrink the Federal Reserve's size and end permanent quantitative easing (QE)." He criticized the Federal Reserve as an "engine of inequality" and advocated for institutional streamlining.
2. Combating Border Money Laundering and Illegal Funds
On December 22-23, Bessent announced the launch of a large-scale federal investigation targeting over 100 money services businesses (MSBs) at the U.S.-Mexico border, suspected of laundering money linked to drug trafficking groups, utilizing advanced data technology to track the flow of funds. This action is seen as a hallmark initiative of the Trump administration to enhance economic security.
3. Deregulation and Political Style
Bessent continues to push for reforms at the Financial Stability Oversight Council (FSOC), advocating for a reduction in "burdensome regulation" and prioritizing economic growth. On December 21, media reports indicated that his strong political style (such as openly participating in partisan activities) breaks with tradition, raising concerns among investors and lawmakers, but he received praise from Trump.
Additionally, he completed the divestiture of a $12.4 million soybean farm asset to avoid conflicts of interest.
4. Other Developments
Bessent actively promotes policies such as the "Trump Account," emphasizing financial literacy and economic growth. On December 18, he was confronted by Code Pink protesters in a restaurant who accused him of "economic war crimes," but it did not affect his work pace.
