On January 16th, Scott Bessent, the nominee for Treasury Secretary by President-elect Trump, faced questioning from the Senate Finance Committee. Before the interrogation, he vowed to ensure the US dollar remains as the world’s reserve currency, while outlining a vision for “a new economic golden age”.
Bessent stated in his prepared testimony that the new Trump administration must prioritize strategic investments that promote economic growth, rather than “wasteful spending that drives inflation”.
“We must ensure that the supply chain is not threatened by strategic competitors, and part of the entire government policy is to judiciously deploy sanctions to address national security needs. It is crucial that we ensure the US dollar continues as the world’s reserve currency,” he expressed.
Bessent voiced support for Trump’s tariff plan, writing, “When used strategically, tariffs can increase fiscal revenue, encourage businesses to resume production, and reduce our dependence on industrial production from strategic competitors, particularly China.”
In his testimony, Bessent also mentioned that the government and Congress need to “make permanent the expiration provisions of Trump’s 2017 tax and employment laws”.
He cautioned, “If Congress fails to act, Americans will face the largest tax increase in history – a burdensome increase of $40 trillion in taxes.”
He also stated that the Trump administration and Congress need to implement “policies that promote growth to alleviate the tax burden on American manufacturers, service workers, and seniors”.
These policies include Trump’s campaign promise to reduce the corporate tax rate for companies manufacturing products in the US from 21% to 15%, and exempt taxes on tips and Social Security income.
With the support of Congress, Bessent believes the Trump administration can usher in a new, more balanced era of prosperity for Americans, which he dubbed “a new economic golden age”.
Senator Elizabeth Warren, a member of the Finance Committee, sent over 100 written questions to Bessent last Friday, covering topics such as institutional independence, housing, Treasury workforce issues, and financial stability oversight.
Bessent is a billionaire and hedge fund manager.
If confirmed, he will be responsible for serving as the president’s economic policy advisor and managing public debt, as well as being a member of the President’s National Economic Council. Additionally, he will oversee major institutions within the Treasury Department, including the IRS.
Trump hopes he will assist in reshaping the global trade order, achieving trillions of dollars in tax cuts, ensuring inflation remains under control, managing the ever-expanding national debt, and maintaining confidence in the financial market.
(Reference: Reuters and AP)