Scott Bessent Confirms Search For Fed Chair Who Will Shrink Institution, End Perpetual QE

Core Viewpoint - The administration is actively seeking a new Federal Reserve Chair who will focus on reducing the central bank's influence and ending the era of quantitative easing [1][2]. Monetary Policy - Treasury Secretary Scott Bessent criticized the Federal Reserve's monetary policies over the past 15 years, particularly large-scale asset purchases initiated in 2008, which he believes have contributed to economic inequality [2][3]. - Bessent described the Fed as "the engine of inequality," arguing that while it is not responsible for creating equality, it should not worsen the wealth gap [3][4]. - He emphasized that the next Chair should regard quantitative easing as an emergency measure rather than a standard practice, highlighting the negative impact of low interest rates and asset purchases on economic fairness [4]. Structural Changes - Bessent called for a structural downsizing of the Federal Reserve, criticizing its lack of budgetary oversight and the ability to "print its own money" without fiscal discipline [5]. - He stated that there is a desire for a smaller and more predictable central bank that does not dominate market sentiment [6]. Candidate Selection - Bessent confirmed that he has conducted in-depth interviews with potential candidates for the Fed Chair position, including Kevin Warsh, Kevin Hassett, and Governor Chris Waller, who align with the administration's vision for a traditional Fed focused on price stability [7].