Treasury Appoints Former Federal Reserve Nominee Judy Shelton as Currency Policy Adviser

Treasury Appoints Former Federal Reserve Nominee Judy Shelton as Currency Policy Adviser

2026-10-09 economy

Washington, Friday, 9 October 2026.
Treasury Secretary Scott Bessent appointed conservative economist Judy Shelton as currency adviser focused on China, bypassing Senate confirmation after lawmakers previously blocked her Federal Reserve nomination over gold-standard views.

Treasury Appoints Former Federal Reserve Nominee Judy Shelton as Currency Policy Adviser

Treasury Secretary Scott Bessent appointed conservative economist Judy Shelton as currency adviser focused on China, bypassing Senate confirmation after lawmakers previously blocked her Federal Reserve nomination over gold-standard views [1][4]. The announcement was made on Friday, 9 October 2026, marking a significant shift in the Treasury’s advisory landscape regarding international monetary policy [1][4]. Shelton will serve as a Counselor in the Office of the Secretary, a role that does not require Senate approval [8]. This appointment places a prominent critic of central bank independence within the executive branch’s economic team during a period of heightened scrutiny on currency markets [1][5].

Strategic Focus on Currency and China

According to the Treasury Department, Shelton will advise Secretary Bessent on currency policy, with a particular focus on evaluating financial conditions in China [4][8]. While Shelton is not traditionally known as a China expert, her career has specialized in analyzing the internal monetary and financial conditions of nations and their impact on exchange rates [1][4]. This directive aligns with broader administration goals to reassess trade and financial relationships with Beijing amidst ongoing economic tensions [7]. The Treasury stated in an announcement released later Friday that her expertise in international financial relations is key to this mandate [4].

Background and Previous Nomination

Shelton’s economic ideas previously led the Senate to block her nomination to the Federal Reserve Board of Governors in 2019 [1][3]. A bipartisan group of Senators, including all Democrats and a handful of Republicans, rejected President Donald Trump’s nomination over her views on Fed independence and her support for the gold standard [1][5]. Prior to joining Treasury, Shelton served as a senior fellow at the Independent Institute and the Hoover Institution at Stanford University [4][8]. She holds a Ph.D. in business administration from the University of Utah and authored books including “Money Meltdown” and “The Coming Soviet Crash” [1][4].

Treasury Staffing and Turnover Context

The appointment comes at a time of turmoil at Treasury regarding high-level personnel, with a recent Wall Street story cataloging seven Senate-confirmed officials who left the department through the end of August [1][8]. Only one of those positions has been filled, representing a fill rate of 14.286 percent of the vacancies [1][8]. Secretary Bessent recently named David Zervos, former chief market strategist at Jefferies, as a counselor, the same job title as Shelton [1][8]. Neither Shelton nor Zervos require Senate approval, allowing for quicker integration into the department’s workflow [8].

Sources


Monetary Policy Treasury Department