Judy Shelton, Former Fed Nominee, Joins Treasury as Adviser on China

U.S. Treasury Secretary Scott Bessent has appointed Judy Shelton, a former nominee to the Federal Reserve Board, as an adviser with a particular focus on China. The Treasury Department announced the appointment on Friday, October 9, 2026.

Ms. Shelton will advise the Secretary on currency policy, with a specific emphasis on evaluating financial conditions in China, according to a Treasury statement. The appointment is effective immediately and does not require Senate confirmation.

The role places Ms. Shelton at the centre of U.S. economic policy-making at a time when relations between Washington and Beijing remain tense over trade, technology, and exchange rates. The Treasury Department is responsible for formulating and implementing the U.S. government's economic and financial policies, managing federal finances, and advising the President on economic matters.

Ms. Shelton brings extensive experience in international finance and economic policy. She previously served as the U.S. executive director at the European Bank for Reconstruction and Development (EBRD), a London-based international financial institution founded in 1991 to help former communist countries in Europe and Central Asia transition to market economies. She also chaired the National Endowment for Democracy (NED), a U.S. organisation established by Congress in 1983 to promote democratic institutions abroad through grants and programmes.

In addition, Ms. Shelton has been a fellow at the Independent Institute, a public policy think tank based in California, and at the Hoover Institution at Stanford University, a prominent research centre that focuses on economics, history, and public policy.

Her return to a high-profile government role follows a contentious episode in her career. President Donald Trump nominated her for a vacant seat on the Federal Reserve Board during his first term in the White House. However, her confirmation faced significant obstacles. Bipartisan concerns arose that her perceived partisanship could undermine the Federal Reserve's independence—a cornerstone of U.S. monetary policy. The nomination ultimately did not succeed.

The Federal Reserve, the central bank of the United States, is designed to operate independently of political pressure to ensure stable prices and maximum employment. Any suggestion of political influence over its decisions is closely watched by economists and investors worldwide. The concerns surrounding Ms. Shelton's nomination reflected the importance placed on maintaining that independence.

Now, in her new role at the Treasury, Ms. Shelton will focus on currency policy—a sensitive area that involves exchange rates, trade balances, and international financial flows. China, the world's second-largest economy, is a key player in these matters. The U.S. Treasury regularly assesses whether trading partners manipulate their currencies to gain unfair trade advantages, and China has often been a subject of such scrutiny.

The Treasury's semi-annual currency report, which monitors exchange rate policies, is due later this year and will be closely examined for any shifts in tone. Ms. Shelton's expertise in international finance and her previous leadership roles are expected to inform the department's analysis.

Observers will be watching how her appointment influences the Treasury's stance on China and global economic issues. However, in this advisory capacity, she will provide analysis and recommendations, not set policy independently. Her role is within the executive branch, reporting directly to the Secretary.

The Treasury's statement did not provide further details on her specific responsibilities or the duration of her appointment. As an adviser, Ms. Shelton will work alongside other senior officials to shape the department's approach to international economic issues.

The appointment comes amid ongoing discussions between the U.S. and China on a range of economic matters. The Treasury Department plays a central role in these talks, and Ms. Shelton's focus on China suggests a continued emphasis on understanding and responding to China's financial policies.

Ms. Shelton's career has included both government service and work in think tanks and international organisations. Her appointment as an adviser allows her to contribute her expertise without the lengthy confirmation process that stalled her previous nomination.