The US Senate on Monday confirmed Scott Bessent as Treasury Secretary in President Donald Trump's government, giving the billionaire hedge fund manager a central role in shaping the new administration's policy priorities regarding tax cuts, government spending and managing economic relations with allies and adversaries.
As the 79th Treasury secretary, Mr. Bessent will have influence over tax collection and the $28 trillion Treasury debt market, fiscal policy, financial regulations, international sanctions and foreign investment.
The vote was 68-29, with 16 Democrats supporting his nomination, A2 reports.
Mr. Bessent, 62, has already emerged as a strong advocate for President Trump's economic agenda, which focuses on tax cuts and high tariffs, which Democrats and some economists argue could undo some of the progress the Federal Reserve has made in bringing inflation under control.
In his confirmation hearing, Mr. Bessent warned that failure to renew a $4 trillion tax cut, which expires at the end of this year, would be a “disaster” for middle-class Americans and argued that the tariffs would help fight unfair trade practices, raise revenue, and strengthen the United States’ influence in international negotiations.
He also rejected the idea that President Trump's policies would be inflationary and said the administration's efforts to increase oil production would actually help lower prices.
As President Trump’s top economic official, Mr. Bessent will face a number of challenges, the most pressing of which will be managing the federal government’s liquidity, after the government reached its legal debt limit on President Trump’s second day in office. Even before he was sworn in, the Treasury Department was using “extraordinary measures” to avoid breaching the debt limit and causing a catastrophic default. Mr. Bessent told senators at his confirmation hearing that there would be no default under his leadership.
Secretary Bessent will also have to deal with the prospect of rising budget deficits and an additional government debt estimated to reach trillions of dollars if the renewal of the tax cut and other promised tax relief cannot be offset by increased revenue or spending cuts. If current precedent continues, he will be a central player working with Congress on the size and shape of tax reforms./ Voice of America (A2 Televizion)
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