Recently, U.S. Treasury Secretary Scott Basset discussed Fed reform on the All-In Podcast, offering sharp insights but with a polished delivery. His main point is that the Central Bank needs to shift its focus from "precise control" to "flexible response."

**New Ideas on Inflation Targets**

Bessent believes that once inflation stabilizes around 2%, there is no need to fixate on that precise number. The economic system itself is dynamic and cannot be perfectly controlled like in a laboratory. Rather than aiming for an exact figure like 2.000%, it is better to adopt a range system—such as locking it in between 1%-3% or 1.5%-2.5%. This not only stabilizes expectations but also leaves reasonable flexibility for policymakers.

Of course, he also cautiously mentioned that changing the target at this stage would damage the Central Bank's credibility, so such an adjustment must wait for the right timing.

**Bitmap Issue: Signal Overly Sensitive**

Besant has strong opinions about the dot plot (interest rate forecast chart) released by Fed officials. This tool was originally intended to enhance transparency, but instead made the market jittery—when officials casually revise a prediction, Wall Street experiences significant fluctuations. He suggests that the new Fed chair might consider eliminating or simplifying such forward guidance, replacing it with clearer and more direct communication.

Regarding the candidates for the next chairman, the industry is generally focused on Kevin Warsh, Kevin Hassett, and Chris Waller. Their common characteristic is that they tend to favor a moderate contraction of Central Bank power, rather than expansionary policy interventions.