Industry-Wide Trends

Ex-Fed nominee Shelton tapped to advise Treasury's Bessent

The appointment of economist Judy Shelton to the Treasury suggests a deregulatory shift that could expand consumer credit access for retailers.

The appointment of Judy Shelton as a counselor to Treasury Secretary Scott Bessent signals a potential shift toward more aggressive deregulation in the financial sector. Shelton is a well-known critic of the Federal Reserve and a proponent of 'hard money' principles. For retailers and service providers who rely on consumer financing, this appointment suggests the new administration is prioritizing a pro-growth, hands-off approach to financial oversight. If Shelton’s influence leads to reduced regulatory pressure on non-bank lenders and fintechs, we could see a more competitive lending environment. This often translates to higher approval rates for your customers and lower merchant fees as lenders face fewer compliance hurdles. However, her stance on interest rates is unconventional. She has historically pushed for lower rates to spur growth but also favors a gold-backed dollar, which could lead to volatility in the credit markets. For now, business owners should view this as a sign that the regulatory 'pendulum' is swinging back. Expect the Treasury to focus on expanding credit access by loosening the rules that have constrained mid-market and subprime lenders over the last few years. This could make it easier for you to offer diverse financing options to a wider range of credit profiles.

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