Scott Bessent wins Senate confirmation as US Treasury secretary
Highlights:
- Confirmed as 79th Treasury secretary
- Must manage tax negotiations, international economic relations
- Faces early test in navigating finances under debt ceiling
The U.S. Senate on Monday confirmed Scott Bessent to be President Donald Trump's Treasury secretary, giving the billionaire hedge fund manager a central role in shaping the new administration's policy ambitions around tax cuts and spending and managing economic relationships with allies and adversaries alike.
As the 79th Treasury secretary, Bessent will have sway over the nation's tax collections and its $28 trillion Treasury debt market, with vast influence over fiscal policy, financial regulations, international sanctions and investments from overseas.
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The vote was 68-29, with 16 Democrats supporting the nomination.
Bessent, 62, is already shaping up to be a forceful advocate for Trump's economic agenda, which centers on reducing taxes and imposing steep tariffs that Democrats, and some economists, argue could undo some of the progress the Federal Reserve has made in getting inflation under control.
In his confirmation hearing, Bessent warned that failure to renew $4 trillion in tax cuts expiring at the end of this year would be a "calamity" for middle-class Americans, and made the case that tariffs would help combat unfair trade practices, increase revenues, and bolster U.S. leverage in international negotiations.
He also pushed back against the idea that Trump's policies would be inflationary, and said that the administration's efforts to increase oil production would actually help bring down prices.
As Trump's top economic official, Bessent will face a range of challenges, the most immediate of which will be managing federal cash flows after the government hit its statutory debt limit on Trump's second day in office. Even before he was sworn in, the Treasury Department was using "extraordinary measures" to avoid breaching the cap and triggering a catastrophic default. Bessent told senators in his confirmation hearing that there would be no default on his watch.
Bessent will also need to deal with the prospect of rising budget deficits and added government debt estimated to run into the trillions of dollars, if tax cut extensions and other promised tax breaks cannot be offset by revenue increases or spending cuts. If precedent holds, he will be a central actor working with Congress on the size and shape of any tax reforms.
More than 60% of the federal debt is scheduled to roll over on his watch - and that's before taking into account issuance growth that has been running at more than $2 trillion a year since the COVID-19 pandemic.
