Ex-Fed nominee Shelton tapped to advise Treasury’s Bessent
- Key insight: Judy Shelton, whose earlier nomination to the Federal Reserve Board failed in 2020, has taken a job at the Department of the Treasury.
- What’s at stake: The appointment comes amid reports of tension and employee turnover at Treasury in connection with Secretary Scott Bessent’s leadership style.
- Forward look: The department said Shelton will advise Secretary Scott Bessent on current policy, with a “focus on evaluating financial conditions in China.”
Judy Shelton, an economist and one-time nominee to the Federal Reserve Board, has been hired by the Department of the Treasury to be a counselor in Secretary Scott Bessent’s office.
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Shelton will advise Bessent on current policy, with a “focus on evaluating financial conditions in China,” the department announced Friday. The appointment does not require confirmation.
Shelton is a longtime advocate for linking government bonds to gold, and was selected by President Trump during his first term to fill a seat on the Fed’s board. The
During the confirmation process, lawmakers including some Republicans voiced concerns about her unconventional policy views, including comments she made about federal deposit insurance.
Shelton most recently was a senior fellow at the Independent Institute, a think tank based in Oakland, California.
In a press release announcing Shelton’s hiring, the department said she’s “testified numerous times before Congress as an expert witness on international financial relations.” It also said Shelton “has consulted with national security officials on global economic developments.”
“Throughout her career, she has specialized in analyzing the internal monetary and financial conditions of nations and their impact on exchange rates,” the department said.
Shelton is the second advisor to Bessent to be named since late September. Less than two weeks ago, the department said it would bring on economist and Wall Street strategist
The hiring of Shelton and Zervos coincides with a recent spike in bond yields, which is causing market concern. The 10-year yield has increased about 135 basis points to 5.23%, while the 30-year yield is up by about 110 basis points from its March low to 5.614%,
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It also coincides with reports of tension and employee turnover within the department.
Bessent denied the Journal’s account, which it said was based on “more than 30 former and current officials at the department and in the wider administration, close associates from Wall Street and others.”
