Trump Administration: The US Senate confirmed Scott Bessent as the new Treasury Secretary on Monday, granting the billionaire hedge fund manager significant authority over the country’s fiscal and economic policies. Bessent, 62, will play a critical role in US President Donald Trump’s administration, shaping policies on tax cuts, spending, and international economic relationships. The Senate approved his nomination with a 68-29 vote, including support from 16 Democrats.
As the 79th Treasury Secretary, Bessent will oversee the nation’s $28 trillion Treasury debt market, tax collections, financial regulations, and international sanctions. In his confirmation hearing, he emphasized the importance of renewing $4 trillion in tax cuts set to expire and advocated for tariffs to combat unfair trade practices and boost U.S. leverage in global negotiations. Despite concerns from some Democrats and economists about potential inflationary effects, Bessent argued that increased oil production under Trump’s administration would help lower costs.
Tackling Debt and Fiscal Challenges
Bessent faces immediate challenges, including managing federal cash flows after the government reached its statutory debt limit. Even before his swearing-in, the Treasury Department employed “extraordinary measures” to avoid default. Bessent assured senators there would be no default under his leadership. However, rising budget deficits, which could grow by trillions if tax cuts are extended without offsetting revenue or spending adjustments, remain a pressing issue. With over 60% of federal debt set to mature during his tenure, Bessent will work closely with Congress on tax reforms and debt management.
Long-term bond yields and mortgage rates have risen recently, reflecting investor concerns about inflation and deficits. Bessent acknowledged these risks during his confirmation, describing government spending as “out of control” but supporting Trump’s pledge to protect Social Security and Medicare.
Born in South Carolina, Bessent earned a political science degree from Yale and built a successful career in finance, working with notable investors like George Soros. As the highest-ranking openly gay federal official in history, Bessent is also fifth in line to the presidency. He lives with his husband and two children, maintaining strong ties to his Southern roots.
(With Agency Inputs)