Scott Bessent Warns About The Bubble And Threatens The Fed's Independence
- Scott Bessent, Trump's nominee for US Treasury Secretary, has a grim view of the current market environment, citing bubbles in stocks and real estate.
- Bessent blames the Federal Reserve for these bubbles and advocates for significant reforms, including stripping the Fed of its regulatory powers.
- He argues that the Fed's ultra-loose monetary policy has allowed "zombie companies" to exist, contributing to a broader misallocation of capital and productivity slump.
- Bessent's nomination suggests Trump's willingness to accept some near-term hardship to ensure long term prosperity, which suggests a deep drawdown in the S&P 500.
Drew Angerer
Bessent's grim views
Scott Bessent is the Trump's nominee for the US Treasury Secretary. He is currently a global-macro hedge fund manager. As a global macro analyst myself, I fully support his nomination and fully share his views, but probably not
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