Bessent refuses to approve tax increases on high incomes
In an exchange with Democratic Senator Raphael Warnock, Bessent repeatedly refused to say he would be willing to raise taxes on America’s highest earners. He reiterated his support for extending the Tax Cuts and Jobs Act from Trump’s first term.
“There is no income level where I don’t think we should continue with the TCJA as it was,” Bessent said.
—Jesse Book
Fed should be independent, says Bessent
Bessent believes the Federal Reserve should be able to make decisions on interest rates independent of the White House.
“When it comes to monetary policy decisions, the FOMC should be independent,” Bessent said.
-Yun Li
Bessent says Trump policies won’t increase inflation
Bessent said he expects inflation to be “much closer” to the Federal Reserve’s 2% target under Trump, while acknowledging that decisions by Congress and the central bank could play a role in the direction of inflation.
When asked by Democratic Sen. Maggie Hassan if he thought any of Trump’s proposed policies would increase inflation, Bessent responded, “Nothing that I can immediately think of.”
The tariffs and government spending proposed by the Trump campaign have raised concerns among some economists and lawmakers that a Republican victory could put upward pressure on inflation.
— Jesse Book
Bessent announces heavier sanctions against Russia
Russia, and particularly oil companies, can expect tougher sanctions under the Trump administration.
“If officials in the Russian Federation are watching this confirmation hearing, they should know that if I am confirmed, and if President Trump requests it as part of his strategy to end the war in Ukraine, I will be d “100% agreement to take sanctions, especially against major Russian oil companies, to levels that would bring the Russian Federation to the negotiating table,” Bessent said.
—Jeff Cox
Bessent says US budget spending is out of control
The United States has a pressing spending problem that is spiraling out of control, Bessent said during his confirmation hearing.
“We don’t have a revenue problem in the United States of America. We have a spending problem,” Bessent said. “That’s one of the things that took me out of my office and out of my quiet life during this campaign is the idea that this spending is out of control.”
Rising financing costs, continued spending growth, and falling tax revenues have combined to cause spiraling deficits and pushed the national debt past the $36 trillion mark.
The three-month deficit in fiscal 2025 was $710.9 billion, some $200 billion higher than the comparable period a year earlier, or 39.4%.
“We’ve never seen this before without recession and war,” Bessent said. “The Treasury, like the government and Congress, used its borrowing capacity to save the Union, to save the world and to save the American people and, with what we have now, we would be hard-pressed to do so. likewise.”
-Yun Li
Bessent says social security “will not be affected”
Bessent used a question about Social Security to say there were no plans to cut the program’s benefits under the Trump administration.
“I want to point out that President Trump has said that Social Security and Medicare will not be affected,” Bessent said.
Potential cuts to Social Security over the next decade, based on current funding projections, are one of the questions looming over the deficit debate in Washington. Bessent said the government needed to get its house in order in the short term before considering other ideas, such as an additional fund, to help support welfare spending.
—Jesse Book
Bessent predicts ‘sudden shutdown’ of economy if tax cuts are not extended
American investor and hedge fund manager Scott Bessent delivers his opening statement during a Senate Finance Committee hearing on his nomination to be Secretary of the Treasury, on Capitol Hill in Washington, DC, January 16, 2025.
Andrew Caballero-Reynolds | AFP | Getty Images
Extending Trump’s so-called tax cuts will be a major economic priority for the new administration, Bessent said in response to initial questions at his confirmation hearing.
“This is the most important economic issue right now,” he said in response to a question about renewing the 2017 Tax Cuts and Jobs Act. “It’s either make or break. If we don’t fix these tax cuts, renew them and extend them, then we will face economic calamity and, as always, financial instability which will fall on the middle class and the working class.”
“We will see a gigantic tax increase on the middle class. We will see the child tax credit cut in half,” he added. “We will see deductions cut in half. (…) This could stop abruptly,”
—Jeff Cox
Bessent says Trump administration policies will ‘liberate the US economy’
Bessent has completed his opening statement and is now answering questions from senators.
The candidate’s opening statement was light on policy details, but generally aligned with the Trump campaign’s arguments.
“As President Trump has said, we will free the American economy by implementing pro-growth regulatory policies, cutting taxes, and unleashing American energy production. The breadth and depth of our markets capital along with predictable, pro-growth tax policy and smart, up-to-date regulation will continue to make America the most popular destination in the world to start, grow and take a business public,” Bessent said .
—Jesse Book
Investors welcome the choice of Bessent
As Scott Bessent prepares to testify in the Senate on Thursday, he has already received a vote of confidence from investors.
The stock market rose immediately after Trump announced Bessent as his pick in late November, part of a prolonged post-election market rally.
The bond market has also recovered, with the iShares 20+ Year Treasury Bond ETF (TLT) up 2.6% on November 25, the first trading day after Trump’s announcement. Bond prices move opposite to yields.
Bessent’s past experience in the hedge fund world and his knowledge of Wall Street may have helped ease investors’ concerns that Trump’s policies would disrupt markets.
—Jesse Book
Bessent allegedly helped plan progressive tariffs for Trump
U.S. President-elect Donald Trump’s nominee for Treasury Secretary, Scott Bessent, arrives for a meeting with Senator Mike Crapo (R-ID) in the Dirksen Senate Office Building December 10, 2024 in Washington, DC.
Kevin Dietsch | Getty Images
Scott Bessent, the nominee for Treasury secretary, was one of the advisers working on a plan for President-elect Donald Trump to impose tariffs more gradually, Bloomberg News reported earlier this week.
The plan could involve a series of tiered rates increasing by about 2% to 5% per month for trading partners, Bloomberg reported, citing people familiar with the matter. The proposal is not yet finalized and has not been presented to Trump, the sources told Bloomberg.
Kevin Hassett, who will become director of the National Economic Council, and Stephen Miran, appointed to head the Council of Economic Advisers, also participated in the discussions, Bloomberg reported.
-Yun Li
Bessent vows to defend US supply chains and the dollar
Without mentioning tariffs, Treasury Secretary candidate Scott Bessent is pushing for a tough policy when it comes to defending American interests abroad.
“We must secure supply chains that are vulnerable to strategic competitors, and we must carefully deploy sanctions as part of a whole-of-government approach to meet our national security requirements. And above all, we must ensure that the US dollar remains the world’s reserve. currency,” Bessent said in remarks prepared for his testimony before the Senate Banking Committee.
President-elect Donald Trump has promised across-the-board taxes against the United States’ global trading partners, although it’s possible he could tailor tariffs to certain goods and services.
—Jeff Cox
