By using personnel selection, Bessant pushed the Federal Reserve to move back to a more traditional, behind-the-scenes role, giving the U.S. Treasury ...

[Bessent Uses Personnel Selection to Push the Fed Back Behind the Scenes, Giving the Treasury More Voice] Mars Finance reports that US President Trump stated he will select the next Federal Reserve Chairman in early January. Treasury Secretary Scott Bessent has organized and overseen the candidate selection process, establishing an agenda that could bring about comprehensive changes to the Fed and push for interest rate cuts. Treasury Secretary Scott Bessent is at a crucial juncture in what could be a defining moment in his administration. While the Fed's power transition poses risks for Bessent, a more plausible possibility is that he will gain new power. He will work with a cooperative Fed Chairman who may be inclined to grant the Treasury Secretary powers long considered inaccessible to the more politically charged branches of the executive branch. This would give the Treasury greater say in the Fed's large-scale asset purchases and sales (referred to as quantitative easing and quantitative tightening, respectively).