In a recent All-In Podcast interview, US Treasury Secretary Scott Bessent said the Trump administration is re-examining "all bank regulation" to ease burdens on financial institutions, as reported by the ABA Banking Journal.
Bessent argued that, as the framework is set up today, regulators are incentivized to "keep tightening the corset" on firms without regard for growth or common sense. "I plan to just keep pushing for safe, sound and smart deregulation," Bessent said.
Bessent stressed that he supports the Fed's independence in setting monetary policy. However, he criticized the Fed's approach to regulation. "I actually think that some of the things they've done in regulation — some of the things they've done in climate and DEI, maybe even nonstandard monetary policy — threatens their independence and I want them to stay strong, robust and independent in monetary policy," he said. "On regulation. I think that they have been much too harsh on especially the smaller banks [and] medium banks."
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