Investing.com -- Scott Bessent, the fund manager selected by President-elect Donald Trump to head the Treasury Department, faced questions on tariffs, tax policy, and budget deficits during his confirmation hearing.
Bessent, who has spent his career in the private sector, advocated for reduced government spending, tariffs, and tax cuts on Thursday. He emphasized the importance of secure supply chains, judicious use of economic sanctions, and maintaining the dollar's status as the world's reserve currency.
Bessent showed a willingness to consider stricter sanctions on Russian oil producers and a potential fee or tariff based on carbon intensity.
If confirmed, Bessent will become a key part of Trump's economic team, advocating for the extension of trillions of dollars in tax cuts set to expire at the end of the year. This, Bessent noted, is a critical test.
Bessent was chosen by Trump to lead the Treasury Department after a tough competition with Howard Lutnick, the long-serving CEO of Cantor Fitzgerald. Lutnick was selected by the president-elect as Commerce Secretary with oversight of trade policy.
Bessent's nomination has been unopposed by Republicans, and his path to confirmation appears clear. Senate Finance Committee Chairman Mike Crapo (R., Idaho) praised Bessent and expressed his support for the nomination.
Democrats questioned Bessent on budget deficits and the potential for the administration's trade and tax policies to predominantly benefit the wealthy. Sen. Ron Wyden (D., Ore.) argued that tariffs would harm consumers and characterized Trump's economic policies as a "class war on typical American families."
Bessent responded by reiterating that the U.S. has a spending problem, not a revenue problem. He cited data showing that high-income households paid a larger share of taxes after the 2017 tax law than before.
Sen. James Lankford (R., Okla) raised concerns about the global corporate minimum tax deal negotiated by the Biden administration through the Organization for Economic Cooperation and Development. Bessent described the policy as terrible and pledged to work towards its reversal.
Sen. Mark Warner (D., Va.) asked Bessent if he would support tougher sanctions on Russia. Bessent said he would if requested by Trump.
Bessent also addressed the prospect of carbon tariffs during the hearing, describing it as a very interesting idea that could be part of an entire tariff program.
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