As expected, Scott Bessent, President-elect Donald Trump’s nominee for treasury secretary, faced tough questions from both Democrats and Republicans during his confirmation hearing before the Senate Finance Committee on Thursday.
Among his AnswerThe billionaire hedge fund manager said the U.S. dollar should remain the world’s reserve currency, the Federal Reserve should remain independent and he was ready to impose tougher sanctions on Russia’s oil sector. Bessent also said he opposes raising the minimum wage nationwide.
Bessent was introduced by his fellow South Carolinian, Republican Sen. Lindsey Graham, who said the country needs a treasury secretary “who knows what he’s doing, has the trust of the president and loves his country.” Graham added: “Their ship came in with this guy.”
Democrats, including Senators Ron Wyden of Oregon and Michael Bennet of Colorado, predictably spread the left’s tired lie that Trump’s promise to extend provisions of his 2017 tax cuts would only benefit the wealthiest taxpayers, and add to the growing national debt, which has now exceeded $36 trillion.
Ironic, isn’t it, that the Democrats Love Tax increases and deficit spending are primarily responsible for the raise in national debt.
Before becoming a Trump donor and 2024 campaign adviser, Bessent donated to various Democratic causes in the early 2000s, most notably Al Gore’s failed presidential bid. He also worked for far-left billionaire George Soros, which raised eyebrows among some Republicans.
Then there was independent Vermont Senator Bernie Sanders, who, like far-left Massachusetts Senator Elizabeth Warren, never saw a wealth redistribution program that he didn’t happily support. In a predictable exchange with Bessent, Sanders asked him if he would “work with those of us who want to raise the federal minimum wage to a living wage to lift millions of Americans out of poverty.” The candidate responded:
Senator, I believe that the minimum wage is more of a state and regional issue.
“You don’t think we should change the federal minimum wage?” Sanders shot back, adding. “We’re at $7.25 an hour.”
“No, sir,” Bessent replied.
As I reported on Thursday, Bessent’s appointment, if confirmed, would likely steer U.S. economic policy toward a more market-oriented approach, with an emphasis on reducing the size of the federal government, an anathema to Democrats in Congress and of the Republicans wisely accepted.
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Trump’s nominee for Treasury Department, Scott Bessent, is facing keen criticism over tariffs, sanctions, Soros and more
The key to Bessent’s previously stated position:
Economic strategy: He has championed policies reminiscent of Japanese Prime Minister Shinzo Abe’s “Three Arrows” – a combination of fiscal stimulus, monetary easing and structural reforms. For the US, this could mean:
deregulation: Reducing regulatory burdens to stimulate economic growth.
Tax policy: Expanding tax cuts, particularly with the aim of expanding provisions of the Tax Cuts and Jobs Act of 2017.Energy policy: Increasing energy production to achieve energy dominance.
Inflation and deficits: Bessent has criticized current economic policies for exacerbating inflation and deficits, and suggested measures aimed at reducing inflation through increased commodity production, and possibly a reconsideration or elimination of initiatives such as the Inflation Reduction Act.
Tariffs: While he has supported Trump’s employ of tariffs as a negotiating tool, Bessent has suggested phasing them in to monitor and counteract any inflationary effects. This suggests a strategic rather than blanket approach to trade policy.
Regarding an independent Federal Reserve, some analysts have previously expressed concerns that markets would scrutinize Bessent’s comments to preserve the independence of the Federal Reserve Given Trump’s habitual disagreements over the Federal Reserve’s interest rate decisions as well as comments about a “shadow” Fed chairman.
Bessent told The committee believes that “monetary policy decisions and the FOMC should be independent,” referring to the Fed’s rate-setting body, the Federal Open Market Committee.
In my opinion, Bessent’s support for fewer regulations and a smaller federal government is because he would do an excellent job as the next finance minister.
