Bessent is pushing an agenda of a smaller Fed balance sheet -- report

  • Bessent would want the Fed to 'organically' reduce bond holdings
Bullard

CNBC is out with a report saying that Treasury Secretary Scott Bessent met with three officials who are candidate to run the Federal Reserve 'in recent days' and it names:

  • former Fed official Larry Lindsey
  • Former Fed official Kevin Warsh
  • Former St Louis Fed President James Bullard

The report also says that Trump's focus is on Warsh, National Economic Council Director Kevin Hassett and current Governor Christopher Waller.

I don't know if we're learning anything from this initial report but deeper in the story it highlights that Bessent is pushing forth with an agenda for the Fed to "organically reduce the massive bond portfolio on its balance sheet."

That could mean more quantitative tightening even if it's more of a stock than flow story.

As for the names, Bullard is the one guy who loves a microphone more than Christine Lagarde. The endless talking from him would be a headache for market watchers.

Fed's Bullard

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