world-economy

Bessent Aide Joins Warsh's Fed Advisory Team

A Treasury Department official working under Secretary Scott Bessent is moving to the Federal Reserve, where he will advise Chairman Kevin Warsh, according to multiple sources.

The appointment reflects Warsh's ongoing effort to reshape the central bank's leadership structure since taking the helm weeks ago. The Fed chairman has signaled plans to reduce the institution's bond portfolio, though any scaling back will require significant public preparation.

Warsh has also established a new communications task force, tapping former Bank of England Governor Mervyn King as co-chair. The chairman recently stated that inflation risks have moderated in recent weeks while reaffirming commitment to the Fed's 2% price stability target.

Market observers have expressed concern that Warsh's stated preference for a less vocal central bank could increase trading volatility, though the chairman has positioned the shift as promoting stability.