In a recent statement, US Treasury Secretary Scott Bessent expressed his expectations regarding the monetary policy direction under the incoming Federal Reserve Chairman Kevin Warsh. He indicated that he does not foresee a quick reduction in the Federal Reserve's balance sheet, contradicting any notions of imminent changes in fiscal strategy. Bessent's comments also highlight a cautious approach, suggesting that the Fed would likely take at least a year to evaluate its monetary policy decisions. Additionally, Bessent emphasized that the future actions of the Fed will ultimately be determined by the monetary authorities, pointing to a deliberate and measured approach in managing the balance sheet. His statements reflect ongoing discussions surrounding economic policy and the importance of stability in financial markets, a sentiment echoed across concerns in the business community. Bessent's remarks come at a time when companies and investors are closely monitoring Federal Reserve policies. With the Dow Jones reaching new record highs, the financial landscape is poised for further scrutiny and potential adjustments depending on the Fed's future decisions. This indicates a crucial period for economic management as the new leadership takes shape in the Federal Reserve.