U.S. Treasury Secretary Besent stated the Fed is a long way from returning to quantitative easing. He also projected a lower oil price regime over the...

U.S. Treasury Secretary Scott Bessent emphasized that the Federal Reserve remains focused on modernizing financial regulation rather than reverting to expansive monetary policies like quantitative easing (QE). In remarks highlighting the need for a strategic vision for the financial system, Bessent praised the Fed's openness to regulatory reforms, including recalibrating capital requirements and prioritizing community bank stability. He underscored that regulators must move beyond "regulation by reflex" and instead align policies with long-term economic goals, such as fostering innovation and safeguarding financial stability.

On energy markets, Bessent projected a return to lower oil prices once geopolitical tensions in the Middle East ease. Speaking amid heightened concerns over disruptions to the Strait of Hormuz, he noted that U.S. crude prices had surged 11% to $74.62 per barrel in early March 2026 but stressed that global oil supplies remain robust. The Treasury Department, alongside the Development Finance Corporation (DFC), announced measures to insure oil tankers operating in the Gulf, aiming to stabilize trade flows and prevent prolonged price shocks. Bessent also dismissed JPMorgan's analysis of the DFC's capacity, calling its assumptions "completely flawed" and emphasizing that government-backed coverage is limited to high-risk zones.

With President Donald Trump signaling potential de-escalation in the U.S.-Iran conflict, oil prices retreated from intraday highs above $119 per barrel, settling near $88–$90 per barrel by mid-March. Bessent reiterated confidence in global oil reserves and U.S. energy production, suggesting prices would stabilize as risks abate. The Treasury's interventions, combined with coordinated efforts among energy-producing nations, aim to mitigate volatility and ensure market resilience.