Washington (Reuters) – President-elect Donald Trump’s pick for Treasury secretary, Scott Bessent, expressed his views on various economic issues at a Senate Finance Committee confirmation hearing on Thursday.
Bessent, a hedge fund manager and founder of Key Square Capital Management, said that the dollar should remain the world’s reserve currency, the Federal Reserve should stay independent, and he is ready to impose tougher sanctions on Russia’s oil sector.
He also expressed support for Trump’s plans to impose steep tariffs, saying they would combat unfair trade practices, raise revenues, and increase U.S. negotiating leverage, including on non-trade issues. Bessent believes that pro-growth tax, investment, trade, and energy policies would usher in a new economic golden age of prosperity.
Regarding Russia’s oil sanctions, Bessent said that U.S. sanctions had been too weak, partly due to the Biden administration’s concern about increasing prices while constraining U.S. oil output. Increased U.S. oil production would allow for tougher sanctions on Russian oil majors, he said.
Bessent also had harsh words for China, calling it “the most imbalanced, unbalanced economy in the history of the world,” and said the U.S. could not allow China to flood U.S. or world markets with cheap goods.
As for the Federal Reserve, Bessent said that he believes in its independence and that the central bank’s monetary policy decisions should be made without interference from the administration. He also believes that the dollar should remain the world’s reserve currency and that the U.S. should ensure it stays that way.
On taxation, Bessent urged the extension of Trump’s 2017 individual tax cuts, saying that allowing them to expire would lead to a $4 trillion tax hike and unleash an economic calamity. He also expressed support for a 100% tax credit for business research and development.
In his prepared remarks, Bessent advocated for a pro-growth, investment-focused approach to economic policy, saying it would be a key way to drive economic growth and reduce income inequality.
