President-elect Donald Trump has the prospect “to unleash a brand new financial golden age” in America, however should first lengthen tax breaks and rein in rampant authorities spending and overregulation, his Treasury Secretary nominee Scott Bessent mentioned Thursday.
Mr. Bessent, a billionaire investor and hedge fund supervisor, opened his affirmation listening to earlier than the Senate Finance Committee by dangling the potential for historic job development and prosperity throughout Mr. Trump’s second time period.
On the identical time, he warned the federal authorities “has a big spending downside” that has pushed deficits to historic highs and left the nation with an affordability disaster.
“We should work to get our fiscal home so as and regulate federal home discretionary spending that has grown by an astonishing 40% over the previous 4 years,” Mr. Bessent warned senators. “Productive funding that grows the economic system have to be prioritized over wasteful spending that drives inflation.”
Mr. Bessent, 62, landed the treasury nomination after serving as a serious donor and fundraiser for Mr. Trump’s marketing campaign. He additionally was an financial adviser to the marketing campaign.
He’s aligned with Mr. Trump’s plan that threatens to impose tariffs on China, Mexico, Canada and different nations to rectify longstanding commerce imbalances. On the listening to, he credited Mr. Trump as “the primary president in trendy occasions to acknowledge the necessity to change our commerce coverage and rise up for American employees.”
Many Democrats are more likely to oppose his nomination, because of his stance on taxes, power and tariffs. However he aligned with Sen. Bernie Sanders, a socialist from Vermont, by assuring him he’s open to Mr. Trump’s plan to cap rates of interest on bank cards at 10%.
Mr. Trump pitched the cap in September as a method to assist struggling shoppers who’re paying rates of interest as excessive as 35%.
Critics say the plan would restrict bank card entry and remove perks, however it’s backed by the far left, together with Mr. Sanders and Rep. Alexandria Ocasio-Cortez of New York.
“When President Trump takes workplace and if I’m confirmed, I’ll observe what President Trump desires to do,” Mr. Bessent mentioned.
Mr. Bessent is a supporter of the 2017 tax cuts enacted throughout Mr. Trump’s first time period. Democrats criticized them as benefiting companies. Mr. Bessent mentioned the cuts have to be prolonged to keep away from the U.S. lurching into an financial disaster once they expire on the finish of this 12 months.
“If Congress fails to behave, People will face the biggest tax enhance in historical past, a crushing $4 trillion tax hike,” he mentioned.
Professional-growth regulatory insurance policies and renewed power manufacturing are the opposite prongs in his plan to assist Mr. Trump rebuild the economic system that he mentioned has sagged beneath President Biden.
Democrats oppose new tariffs, arguing they’ll elevate client costs and damage the economic system.
“You may name it no matter you need and take a look at when it comes to making an attempt to gussy it up. They’re going to be paid for by our employees and small companies,” Oregon Sen. Ron Wyden, the highest Democrat on the Finance Committee, mentioned.
The historical past of tariffs, Mr. Bessent countered, signifies they don’t result in sky-high costs.
“Client preferences might change,” he mentioned, and nations hit with tariffs, similar to China, “will proceed reducing costs to keep up market share.”
Mr. Trump’s second administration is anticipated to place Mr. Biden’s clear power agenda on the again burner, and Mr. Bessent indicated he favors dumping the federal authorities’s give attention to increasing wind and photo voltaic on the expense of fossil fuels and nuclear.
He criticized Mr. Biden’s Inflation Discount Act, which allocates billions of {dollars} to inexperienced power initiatives.
Mr. Wyden mentioned America shall be left trailing different nations, like China, within the race to provide nonfossil gasoline alternate options similar to wind and photo voltaic.
“China will construct 100 new coal vegetation this 12 months,” Mr. Bessent mentioned. “There’s not a clear power race. There’s an power race. China will construct 10 nuclear vegetation this 12 months. That’s not photo voltaic. I’m in favor of extra nuclear vegetation.”
Mr. Bessent is anticipated to simply win affirmation within the GOP-led Senate.
