Bessent: Does not rule out serving as Federal Reserve Chair, AI is the core of the U.S. economy
US Treasury Secretary Bessent expressed his views in an exclusive interview on Friday, outlining his policy blueprint for artificial intelligence, energy, taxation, and financial regulation, and indicated that he does not rule out the possibility of becoming Federal Reserve Chair in the future.
Bessent stated that he does not rule out the possibility of becoming Chair of the Federal Reserve in the future, but firmly rejects running for any elected office. He explained that the Federal Reserve chair does not require participating in elections, has the ability to shape the economic trajectory, and that the Fed itself is an important institution.
In terms of policy priorities, Bessent places artificial intelligence at the core of America's economic competitiveness. He warned that the window for technological disruption has significantly narrowed—not five years, but "one year, maybe eighteen months."
Meanwhile, he expects economic growth to return to normal after a brief shock. The "timeline for the economy benefiting every household" has been postponed from Q2 2026 to Q3 2026.
Does not rule out possibility of becoming Fed Chair in the future
Bessent's background has shaped his unique policy style. He grew up in South Carolina; his father was a real estate developer who experienced economic ups and downs.
After graduating from Yale, he entered Wall Street, honing his skills for years in the macro hedge fund sector, studying under Soros.
He expressed that after leaving the Treasury, he hopes to continue working privately in the fields of supply chain, military readiness, AI policy, and financial regulation. He has unequivocally ruled out the possibility of running for any public office.
However, when asked about the Fed Chair position, he responded: "I would not say 'no' to becoming Fed Chair in the future." He explained that this position does not require elections, offers the ability to shape the economy, and is itself an important institution.
AI is the core of economic competitiveness; window has narrowed dramatically
Bessent describes artificial intelligence as the central track determining economic prosperity. "One year, maybe eighteen months"—this technology will completely change our lives, he said.
In his depiction, the impact of AI is both profound and tangible: the cost of entire categories of work will be compressed to a fraction of current levels, small businesses can operate with a handful of employees plus an AI agent system, and productivity increases will ripple throughout the economy in unpredictable but undeniable ways.
At the same time, he remains highly vigilant on AI risks. Bessent revealed that a high-level group he is part of meets weekly to monitor AI model capabilities, assess system vulnerabilities, and focus on potential threats from criminals, hostile actors, and deliberate sabotage.
Tax reform focus: tilted toward low-income groups
On tax policy, Bessent's focus is not on adjusting nominal tax rates, but on distribution outcomes. The core metric he repeatedly cites is the income changes of the bottom 50% wage earners.
He pointed out that during Trump’s first term, this group’s income grew at a faster percentage rate than the top 10%—replicating that pattern is his policy goal, with both economic and political significance.
He cited measures such as exempting overtime income from taxes as examples, believing these policies have started to change income distribution outcomes. Treasury data show that nearly half of taxpayers benefit from hallmark initiatives of the current administration, and real wages are rising.
He believes the actual purchasing power gap caused by inflation during the Biden administration—when nominal wage growth lagged behind key household goods prices—still has room to be bridged.
Manufacturing & financial regulation: building resilient, inclusive economic growth
In Bessent's policy framework, energy is both a constraint and a regulator. The Iran conflict has pushed up energy prices, but he views this as self-correcting dynamics: higher prices stimulate production, and as supply increases, prices naturally fall.
The deeper policy logic is aligning energy with industrial policy. He believes that, for decades, the US has, through regulatory burdens, policy inertia, and strategic neglect, excessively ceded domestic manufacturing capacity. Rebuilding this capacity is driven not by sentiment but by considerations of resilience.
In the realm of financial regulation, he believes that regulatory reforms following the 2008-2009 financial crisis had unintended consequences: "We went from 'too big to fail' to 'too small to survive'." Large institutions further cemented their advantages, while small banks were crowded out of the market.
This assessment forms the core logic behind his push for financial deregulation. In his overall policy design, taxation, manufacturing, and deregulation work together, ultimately towards the same goal: sustainable economic growth that broadly benefits all strata.
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