Washington, Feb 6 || A sharp partisan clash over inflation, bank regulation and financial stability dominated a Senate Banking Committee hearing on as Treasury Secretary Scott Bessent defended the administration’s economic record and the Financial Stability Oversight Council’s 2025 annual report.
Stressing growth and affordability, Committee Chairman Tim Scott warned against policies that burden households. “A system that slows growth, limits opportunity or prices families out of basic financial services is not a stable system,” Scott said.
Bessent told lawmakers the FSOC has changed course. He said it has moved away from what he called “regulation by reflex.” The council is now focused on growth and economic security. “Promoting economic growth and economic security is essential to ensuring financial stability,” he said.
He said the 2025 report highlights four priorities. They are Treasury markets, cybersecurity, regulatory modernization and artificial intelligence. “The council is prioritizing the responsible use of artificial intelligence to strengthen financial stability,” Bessent said.