Scott Bessent Calls Out Congressional Trading Amid Record-Bullish US Equity Bets

Treasury Secretary Scott Bessent renewed his demand to ban stock trading by members of Congress, citing the extraordinary returns achieved by leaders like Senator Ron Wyden (123.8% in 2024) and Speaker Nancy Pelosi (70.9% in 2024), which significantly surpass benchmarks like the S&P 500's 24.9% return. Bessent argued these results undermine Congress's credibility. This scrutiny coincides with record-high bullish positioning in US equities, with S&P 500 futures net long exposure reaching 49%. Analysts suggest that increased regulatory attention often appears late in bull cycles, potentially after insiders have already profited. Research from the NBER indicates congressional leaders outperform peers by about 47% annually due to political influence and access to nonpublic information. While public support for banning trading is high, legislative efforts like the Restore Trust in Congress Act have stalled. The context of extreme market positioning suggests market maturity, with some analysts, like Bank of America, forecasting modest upside for the S&P 500 in 2026.

(Source：BeInCrypto)