FSOC Overhaul: Boosting Growth by Easing Financial Rules

The Trump administration is revamping the Financial Stability Oversight Council to prioritize economic growth by easing financial regulations considered overly burdensome. Treasury Secretary Scott Bessent announced the shift, which includes new working groups focusing on market and household resilience, as well as artificial intelligence.

The Trump administration is initiating significant changes in the Financial Stability Oversight Council (FSOC) to enhance its focus on fostering economic growth by loosening stringent financial regulations. This move was announced by Treasury Secretary Scott Bessent on Thursday.

Historically tasked with overseeing financial system risks post-2008 crisis, the FSOC's new agenda includes reducing the perceived regulatory burden on economic activities, which Bessent now argues poses a threat to growth. Under this revision, the FSOC will create working groups dedicated to examining market resilience, household resilience, and the implications of artificial intelligence on finance.

Bessent shared these developments via social media platform X, ahead of an important FSOC meeting he is set to lead on Thursday afternoon.