Scott Bessent

Well, the Fed, I 100% support the Fed's autonomy in monetary policy. I don't agree with it all the time. Right. it is it's how it is it's how it is and um so and and i said i won't comment on perspective policy i can talk about their mistakes in the past which have been numerous but i i think like like with like with it with any system as it expands beyond sort of the core uh i i actually think

Well, the Fed, I 100% support the Fed's autonomy in monetary policy. I don't agree with it all the time. Right. it is it's how it is it's how it is and um so and and i said i won't comment on perspective policy i can talk about their mistakes in the past which have been numerous but i i think like like with like with it with any system as it expands beyond sort of the core uh i i actually think

that some of the things they've done in regulation, some of the things they've done in climate and DEI, some of the things, maybe even non-standard monetary policy, threatens their independence. And I want them to stay strong, robust, and independent on monetary policy. On regulation, I think that they have They have been much too harsh on especially the smaller banks, medium banks.

that some of the things they've done in regulation, some of the things they've done in climate and DEI, some of the things, maybe even non-standard monetary policy, threatens their independence. And I want them to stay strong, robust, and independent on monetary policy. On regulation, I think that they have They have been much too harsh on especially the smaller banks, medium banks.

So there's three main bank regulators. There's the Fed, Office of Control of the Currency, OCC, and the FDIC. And then they're... other regulators, the SEC, CFTC, but the banking regulators at the federal level are those three. Here at Treasury, we have something called FSOC, Financial Stability Oversight Council, and I chair that. And via that, the President's Working Group

So there's three main bank regulators. There's the Fed, Office of Control of the Currency, OCC, and the FDIC. And then they're... other regulators, the SEC, CFTC, but the banking regulators at the federal level are those three. Here at Treasury, we have something called FSOC, Financial Stability Oversight Council, and I chair that. And via that, the President's Working Group

which is another convening mechanism that I plan to just keep pushing for safe, sound, and smart deregulation. Why are we doing this? Why are we doing that? Again, that there's a capital charge to banks for buying treasury bills. So I actually think there's a chance that if we take, it's called the supplementary leverage ratio. If we take that away, it becomes a binding constraint on banks.

which is another convening mechanism that I plan to just keep pushing for safe, sound, and smart deregulation. Why are we doing this? Why are we doing that? Again, that there's a capital charge to banks for buying treasury bills. So I actually think there's a chance that if we take, it's called the supplementary leverage ratio. If we take that away, it becomes a binding constraint on banks.

We might actually pull treasury bill yields down by 30 to 70 basis points. Every basis point is a billion dollars a year.

We might actually pull treasury bill yields down by 30 to 70 basis points. Every basis point is a billion dollars a year.

Yeah, look, I thought that when rates were low, you're supposed to turn out rates.

Yeah, look, I thought that when rates were low, you're supposed to turn out rates.

And instead, the Treasury for the past few years has pulled rates in. And I think part of that was to keep rates lower, that they changed the issuance schedule when rates moved back up towards 5%. have maintained that policy, but I'm maintaining it because, back to David's question, when are we gonna see the results from getting the government spending under control?

And instead, the Treasury for the past few years has pulled rates in. And I think part of that was to keep rates lower, that they changed the issuance schedule when rates moved back up towards 5%. have maintained that policy, but I'm maintaining it because, back to David's question, when are we gonna see the results from getting the government spending under control?

And I don't think the markets recognize it yet.

And I don't think the markets recognize it yet.

Yeah. The central value tendency, you're right. The central value tendency, what's the center of it? Because the range of outcomes is so broad. And we know there's a problem there. We know there's waste, fraud, and abuse. quantify it. So I think as we are more able to quantify it, we will get credit for it.

Yeah. The central value tendency, you're right. The central value tendency, what's the center of it? Because the range of outcomes is so broad. And we know there's a problem there. We know there's waste, fraud, and abuse. quantify it. So I think as we are more able to quantify it, we will get credit for it.

Yeah, I think there are a lot of headlines, especially after the CR, about the Democrats being in disarray. And media likes to write about disarray. I think the untold story here is Republicans have, for a change, actually been very disciplined. And I think a lot of that...

Yeah, I think there are a lot of headlines, especially after the CR, about the Democrats being in disarray. And media likes to write about disarray. I think the untold story here is Republicans have, for a change, actually been very disciplined. And I think a lot of that...