Treasury Secretary Scott Bessent is reportedly proposing a significant shift in the government’s approach to financial regulation and stability.
In a letter scheduled for release today, Bessent will suggest changing the approach of the Financial Stability Oversight Council, formed in the wake of the financial crisis of 2008.
Bessent’s letter will reportedly state that the Council will collaborate with member agencies to assess whether parts of the U.S. financial regulatory system impose excessive burdens and hinder economic growth, thereby threatening financial stability.
While the agency’s previous focus was tightening regulations and oversight of the institutions it supervises, the new approach will shift to advocating for looser regulation and a more relaxed approach.
FSOC was established after the 2008 financial crisis to monitor and address the systemic risks that caused the collapse of major Wall Street institutions and pushed the economy into its worst downturn since the Great Depression.
Earlier this week, Bessent said that the U.S. economy would end the year on solid footing. “The economy has been better than we thought. We’ve had 4% GDP growth in a couple of quarters.”
“We’re going to finish the year, despite the Schumer shutdown, with 3% real GDP growth,” he said.
By CEO NA Editorial Staff
