U.S. Treasury Secretary Scott Bessent emphasized the importance of selecting a new Federal Reserve chair who can navigate the organization’s complex mission beyond monetary policy, ensuring independence. Bessent stressed the need for strong market confidence, analytical skills, and forward-thinking mindset in the potential candidate, as reported by Japan’s Nikkei newspaper.

Amid President Trump’s calls for interest rate cuts, Bessent reiterated the Fed’s independence. He clarified the administration’s “strong dollar” policy focuses on maintaining the U.S. dollar as a reserve currency through sound economic policies, rather than manipulating market prices. Bessent’s discussions with Japan on exchange rates aim to ensure currency stability based on economic fundamentals.

In talks with Japan over exchange rates, Bessent underscored the importance of the Bank of Japan’s focus on economic fundamentals, inflation, and growth to drive currency outcomes. The U.S. Treasury Department’s report suggested the BOJ maintain its tightening monetary policy to support a normalization of the yen’s weakness, aligning with Bessent’s views on currency stability.

Bessent expressed confidence in the Bank of Japan’s commitment to achieving inflation targets over currency outcomes, noting Governor Kazuo Ueda’s focus on economic fundamentals. The BOJ’s decision to exit massive stimulus measures and raise interest rates in January indicates progress towards reaching Japan’s 2% inflation target, underscoring the central bank’s economic priorities.

Read more at Yahoo Finance: Bessent says new Fed chair should be someone who can examine organization, Nikkei reports