Treasury Secretary Bessent Calls for Federal Reserve Review, Touts GENIUS Act and Dollar Dominance

Listeners in the past several days Scott Bessent as Secretary of the Treasury has emerged into the national spotlight with a strong and direct critique of the Federal Reserve. On Monday Treasury Secretary Bessent called for a sweeping investigation into the operations and effectiveness of the Federal Reserve. Speaking during a CNBC interview Bessent openly questioned whether the central bank has actually met its mandate. He argued that examining its performance is as necessary as the safety reviews in critical agencies like the Federal Aviation Administration. According to Bessent persistent inflation concerns cited by the Fed have not truly materialized and he believes the economic risks around current tariffs have been exaggerated. He pointed to recent data showing annual inflation at two point seven percent in June and noted that inflation rates have not spiked as previously feared by economists or the central bank.

This campaign for a formal review comes amid continued discord between the Trump administration and Fed Chair Jerome Powell. President Trump has repeatedly called for rate cuts which Powell has resisted warning about overheating and inflation. While speculation has been swirling regarding Powell’s future Bessent was notably the first administration official to confirm that a process for Powell’s possible replacement was underway though he declined to say if he personally urged the president not to remove Powell.

Turning to legislative action Bessent has also made headlines following the signing of the GENIUS Act by President Trump. In a statement he said stablecoins now represent a revolution in digital finance providing an internet native payment rail for the dollar. He argued that this could solidify the dollar’s role as the global reserve currency expand access for billions and create a surge in demand for US Treasuries which underpin these digital assets. Bessent described the GENIUS Act as a watershed moment for both digital assets and dollar dominance worldwide.

Amid other regulatory moves the Treasury recently decided to postpone the implementation of new anti money laundering rules for investment advisers. The Financial Crimes Enforcement Network known as FinCEN will delay the rule’s effective date from January twenty twenty six to January twenty twenty eight in order to tailor the requirements to the sector’s varied risk profiles. Bessent’s Treasury stated that this delay is intended to reduce regulatory uncertainty while a broader review takes place in partnership with the Securities and Exchange Commission.

In addition Bessent addressed ongoing US trade negotiations and expressed optimism regarding economic growth noting that recent legislative clarity is likely to fuel a wave of business investment and renewed productivity.

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