Treasury's Bessent names Trump's ex-Fed pick Judy Shelton as adviser

• Shelton will focus on evaluating financial conditions in China, though she is not known as a China expert but rather for her work on international monetary regimes and the gold standard
• Her 2019 Fed nomination failed due to bipartisan opposition over her questioning whether the U.S. needed a central bank and her support for the gold standard
• The appointment comes amid Treasury personnel turmoil, with seven Senate-confirmed officials leaving through August and only one position filled

Summary: Treasury Appoints Judy Shelton as Currency Policy Adviser

Key Appointment:

Treasury Secretary Scott Bessent has named Judy Shelton as a counselor to advise on currency policy, with particular emphasis on evaluating China's financial conditions. The position does not require Senate approval.

Background:

Shelton was previously blocked by the Senate in 2019 from joining the Federal Reserve Board after a bipartisan rejection. Senators, including all Democrats and some Republicans, opposed her nomination due to controversial views on Fed independence, support for the gold standard, and questioning whether the U.S. needed a central bank.

Qualifications:

Shelton holds a Ph.D. in business administration from the University of Utah and has specialized in analyzing internal monetary and financial conditions of nations and their impact on exchange rates. She authored "Money Meltdown" (1988) about unified international monetary systems and "The Coming Soviet Crash" (1989). She is not recognized as a China expert specifically. Prior to this role, she served as a senior fellow at the Independent Institute and the Hoover Institution at Stanford University.

Context:

The appointment occurs during apparent staffing challenges at Treasury. According to a Wall Street Journal report, seven Senate-confirmed officials have departed through August, with only one position filled. Bessent also recently hired David Zervos, former Jeffries chief market strategist, as another counselor—a position that similarly bypasses Senate confirmation.

Market Implications:

The appointment signals potential focus on currency policy and China-related financial analysis, though Shelton's unconventional monetary views may raise questions about Treasury's policy direction on international monetary matters.