## The US Market Grows Strongly, but Monetary Policy Is About to Undergo a "Revolution"

2025 witnesses an impressive recovery on Wall Street. The S&P 500 rises by 17.74%, the Nasdaq Composite climbs 22.20%, while the Dow Jones records a 14.27% increase. However, behind these promising figures lie intense debates about the direction of the US economy in the next decade.

## "What is QE?" - The Question the US Treasury Secretary Wants to Completely Change

Treasury Secretary Bessent just announced a shocking statement: the US government is actively seeking a new Fed leader, and these candidates must commit to withdrawing from the massive asset purchase program—commonly called QE (Quantitative Easing). What is QE? Essentially, it is a central bank policy of directly buying assets like bonds to inject money into the economy when interest rates are at their lowest.

According to Bessent, 15 years of implementing this policy—starting after the 2008 financial crisis—have created an unintended consequence: deepening the wealth gap. He criticizes the Fed for becoming "an engine of economic inequality" through artificially lowering interest rates and purchasing trillions of dollars in assets.

## New Expectations for the Next Fed Chair

In an interview on the "All-In" podcast, Bessent clarified the criteria for selecting the new Fed leader. This person must be ready for a significant shift: not only to stop QE but also to reduce the entire agency’s scale structurally. He criticizes the Fed for "printing money" without the strict budget oversight that other government agencies must endure.

Bessent emphasizes: "Everyone expects a smaller and more predictable Fed." Instead of being a "market disruptor," the Fed should step back into the background, so the market does not live in constant anxiety over every comment from the Chair.

## The Interview and Leading Candidates

Bessent revealed that he has conducted in-depth interviews with prominent figures, including Kevin Warsh, Kevin Hassett, and Fed Board member Waller. All finalists share a common vision: the Fed needs to return to its "traditional role"—focusing on price stability rather than deeply intervening in the entire economy.

Bessent concludes confidently: "Perhaps only I understand best what needs to change." This suggests that the list of nominees for the Fed Chair position will soon be announced, officially marking a new era in US monetary policy.