US Treasury Secretary Bessent Proposes Reforms to Financial Stability Oversight Council
Bessent’s new FSOC framework seeks lighter regulation to spur economic growth while launching an AI group to evaluate resilience gains and emerging risks to financial stability.
Summary
On Dec. 11, U.S. Treasury Secretary Bessent proposed major revisions to the Financial Stability Oversight Council’s regulatory stance, advocating lighter oversight to support economic expansion. The plan includes establishing an AI-focused group to assess how artificial intelligence can strengthen financial resilience and to monitor potential risks to stability from AI technologies.
Terms & Concepts
- Financial Stability Oversight Council: A U.S. government body responsible for identifying and addressing risks to the nation’s financial stability.
- Artificial Intelligence (AI): Computer systems designed to perform tasks that typically require human intelligence, such as analysis, decision-making, and pattern recognition.