U.S. Treasury nominee Scott Bessent appeared before the Senate Finance Committee on Thursday for his confirmation hearing.
In various exchanges with lawmakers, Bessent urged senators to extend President-elect Donald Trump’s 2017 Tax Cuts and Jobs Act, calling it the “the single most important economic issue of the day.”
“If we do not fix these tax cuts, if we do not renew and extend, then we will be facing an economic calamity, and as always, with financial instability that falls on the middle and working class,” Bessent told lawmakers.
The billionaire financier dismissed criticisms of tariffs, telling Sen. Ron Wyden (D-Ore.) that they are an economic tool to strengthen the U.S. dollar, facilitate changes to consumer preferences, and cause foreign manufacturers to cut their prices.
President-elect Trump’s tariffs strategy can fit into three broad categories, he said: address unfair trade practices, generate federal revenues, and act as a negotiating tool.
“The history of tariffs and tariff theory—optimal tariff theory—does not support what you’re saying,” Bessent told Wyden.
Bessent, a Wall Street veteran, touched upon a range of issues during his confirmation hearing.
The Key Square Group founder reiterated his support for the Federal Reserve’s independence. He believes the interest rate-setting Federal Open Market Committee (FOMC) should remain independent when crafting monetary policy.
His comments were in response to Trump’s campaign remarks that he should be able to express his opinions on interest rates. Trump later clarified that he should not be allowed to order rate cuts or hikes, only offer input.
“President Trump is going to make his views known, as many senators did, three senators, including two on this committee,” Bessent said.
Bessent does not believe the Treasury needs to continue pursuing the potential creation of a central bank digital currency, also known as a CBDC.
“I see no reason for the U.S. to have a central bank digital currency,” Bessent said. “In my mind, a central bank digital currency is for countries who have no other investment alternatives.”
As Congress engages in another debt ceiling showdown, Bessent told the committee he would be open to abolishing it. These remarks echo Trump’s recent comments about working with Democrats to eliminate the debt limit.
“Once President Trump takes office, and if I’m confirmed, if he wants to eliminate the debt limit, I will work with him and you on that,” he said in an exchange with Sen. Elizabeth Warren (D-Mass.)
Warren also confirmed that she agreed with the president-elect on abolishing the debt limit.
BOOKMARKS
Freezing temperatures and snow are in store for the East Coast this weekend, according to the National Weather Service. The “Arctic blast” is expected to produce inclement weather lasting through Inauguration Day and into next week.
Florida attorney general Ashley Moody has been tapped by Gov. Ron DeSantis to replace Sen. Marco Rubio. Rubio has been nominated as Secretary of State by President-elect Donald Trump and will resign the Senate before his expected confirmation.
Former House Speaker Rep. Nancy Pelosi (D-Calif.) will skip Trump’s inauguration, a spokesperson says. Michele Obama will also be absent, though former President Barack Obama is expected to attend.
President Joe Biden signed an executive order tightening cybersecurity regulations for government agencies, following increased digital attacks by hostile countries including China and Russia. New rules include tighter authentication protocols, encryption, and a lower threshold for issuing sanctions against tech-hostile countries.
Embattled South Korean president Yoon Suk Yeol—suspended after declaring martial law in December—failed to show up on Jan. 16 for a second round of questioning related to that event. An anti-corruption investigation is trying to determine if Yoon will be reinstated, or if he is guilty of rebellion—which could result in his execution or life imprisonment.
—Stacy Robinson
