On January 27, 2025, the U.S. Senate confirmed billionaire investor and hedge fund manager Scott Bessent as Treasury Secretary in a 68-29 vote. A historic appointment, Bessent becomes the first openly gay Treasury Secretary and the first LGBTQ Senate-confirmed Cabinet member in a Republican administration. His confirmation marks a pivotal moment in President Donald Trump's ambitious second-term economic agenda.
I don't want to get too far ahead of myself but...
— Brad Garlinghouse (@bgarlinghouse) November 23, 2024
Scott Bessent is the perfect pick by @realdonaldtrump!
He will be the most pro-innovation, pro-crypto Treasury Sec we've ever seen
Key Responsibilities and Challenges
Bessent steps into his role amid a mix of economic opportunities and challenges, with a steady U.S. economy marked by 4.1% unemployment and strong growth, though inflation exceeds the Federal Reserve's 2% target. His immediate priorities include addressing the record-high federal debt ceiling, following his predecessor’s use of extraordinary measures to avoid a financial crisis, and working with Congress to make the expiring provisions of Trump’s 2017 Tax Cuts and Jobs Act permanent, arguing that government spending, not revenue, is the real issue.
Additionally, he will manage Trump’s tariff-heavy "America First" agenda, which proposes levies of up to 25% on goods from Canada and Mexico and 60% on Chinese imports, alongside exploring the creation of an External Revenue Service to collect tariff revenues. To reduce the federal deficit, Bessent has introduced his "3-3-3" economic plan, targeting a 3% deficit-to-GDP ratio, 3% annual economic growth, and a daily increase in domestic oil production by 3 million barrels by the end of Trump’s term.
I’d follow Scott Bessent into war.🫡
— Geiger Capital (@Geiger_Capital) January 22, 2025
“If illegal immigration is good for GDP, just build a road from Tierra del Fuego to the Rio Grande and let everyone in. We could double GDP… but per capita GDP per AMERICAN would drop substantially. It’s about Americans’ standard of living.” pic.twitter.com/M1x9Z03Uwn
Controversies and Criticism
Despite receiving bipartisan support, including 16 Democratic votes, Bessent faced scrutiny during his confirmation process.
Democrats criticized Bessent for failing to pay nearly $1 million in Medicare taxes tied to his hedge fund's limited partnership. Bessent is contesting the liability in court and has committed to settling the debt if the ruling goes against him.
Some Democrats, like Senator Chris Coons, expressed opposition to Bessent's support for extending tax cuts for the wealthy and his alignment with Trump’s tariff policies. However, Coons acknowledged Bessent's commitment to supporting international financial institutions such as the World Bank and IMF.
Policy Commitments
During his confirmation hearing, Bessent addressed several pressing issues:
- IRS Direct File Program: He committed to maintaining the IRS Direct File program for the 2025 tax season, despite Republican criticism of the program's cost.
- Federal Reserve Independence: Bessent affirmed that the Federal Reserve should remain free from presidential influence.
- Sanctions on Russian Oil: He advocated for more aggressive U.S. sanctions on Russian oil as part of a broader geopolitical strategy.
Background and Historic Appointment
Bessent's financial expertise stems from his tenure as founder of Key Square Capital Management and as chief investment officer at Soros Fund Management. Although previously a supporter of Democratic causes, Bessent has become a staunch advocate of Trump's economic policies. His nomination aligns with Trump's goal of assembling a Cabinet of business leaders and outsiders to drive a transformative economic agenda.
President Trump praised Bessent as a "strong advocate of the America First Agenda," promising that his leadership would usher in a "Golden Age" for the U.S. economy. With his confirmation, Bessent is poised to play a pivotal role in shaping fiscal policy, addressing global economic challenges, and advancing Trump's vision for economic growth and innovation.
Kataryna Habeliia
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