Bessent: “We will center financial regulation on Main Street, not Wall Street”

People are watching Scott Bessent closely not solely because of his key role as Treasury Secretary. It is also because he has been rumored to be a potential replacement for Chairman Powell. Thankfully, Powell’s term ends on May 15, 2026 (Federal Reserve). Maybe we can see housing boom again.

Treasury Secretary Scott Bessent spoke at the Federal Reserve Capital Conference about the focus changing from only Wall Street to Main Street and Wall Street.

Secretary Bessent’s Remarks

“I have made clear that we need a fundamental reset of financial regulation. And the Treasury Department is committed to playing an active role in this effort. That’s why earlier this year, I laid out guiding principles to build a financial system that delivers for both Wall Street and Main Street….

“Despite bank regulators’ significant influence on our economy, up until now, financial regulation has not been nested in a broader strategic vision for the financial system. Instead, we have seen regulation by reflex. Rather than preempting crises, regulators all too often react to them after the fact. They play the role of a hazmat cleanup team instead of preventing dangerous spillovers in the first place.

The Supervisory Failures

“This is especially true in the case of supervisory failures, where regulators often overcompensate by piling rule on top of rule, based on an incomplete understanding of the larger costs and benefits to society. This reactionary approach can generate regulations at odds with our domestic and international priorities….

“The bank regulators must continue to carry out their statutory mandates—maintaining safety and soundness, protecting consumers, and mitigating risks to financial stability. Rationalizing and tailoring regulation does not have to amount to regulatory weakening.

“But in parallel, Treasury will convene interagency consultations to define a strategic policy direction. To that end, Treasury will encourage bank regulators to consider how proposed rules will impact growth. We will center financial regulation on Main Street, not Wall Street.

“We will protect the viability of our community banks; we will be vigilant against debanking of customers based on religious or political views on either side of the aisle; we will reject international standard setting that does not advance America’s interests; we will support innovation both within and outside the financial system; we will drive alignment between our illicit finance program and our national security priorities (Treasury).”

It’s Main Street’s Turn

Bessent Explains What It Means to the Workers.

It makes you want to cry to see how wonderful it is to help the working man and woman.