US President Donald Trump has appointed Scott Bessent as the new head of the US Treasury Department. This move comes amidst a series of high-profile nominations by Trump. If confirmed, Bessent would prioritize extending tax cuts from Trump’s first term, which are set to expire at the end of next year.
Bessent’s Nomination and Implications
Impact on Tax Policy
If confirmed, Scott Bessent would almost immediately be plunged into the fight in Washington over extending the tax cuts from Trump’s first term. He has stated that ensuring these tax cuts do not expire as planned at the end of next year would be his top priority.
Other Key Appointments and Announcements
Other Cabinet Nominees
Other notable nominees include Lori Chavez-DeRemer for US Labor Secretary, Scott Turner for Department of Housing and Urban Development, Russell Vought for director of the US Office of Management and Budget, and Alex Wong and Sebastian Gorka for White House roles.
Bessent’s Potential Impact on Treasury
If confirmed by the Senate, Bessent would almost immediately be plunged into the fight in Washington over extending the tax cuts from Trump’s first term. He has stated that ensuring these tax cuts do not expire as planned at the end of next year would be his top priority.
Quotes from Donald Trump and Scott Bessent
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“Scott is widely respected as one of the World’s foremost International Investors and Geopolitical and Economic Strategists,” Trump said in his announcement on Truth Social.
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“[He] has long been a strong advocate of the America First Agenda,” he said, adding that Bessent would “support my Policies that will drive US Competitiveness, and stop unfair Trade imbalances.”
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In an interview with Fox News shortly before the election, Bessent warned that if the tax cuts expire as planned at the end of next year, it would be the largest tax increase in US history.
Overview of the Role
The US Treasury Department is a key liaison between the White House and Wall Street, with critical functions including collecting taxes, supervising banks, wielding sanctions, and handling US government debt.
Scott Bessent’s Background and Qualifications
Scott Bessent is a Wall Street financier who previously worked for George Soros. He was an early backer of Trump’s 2024 presidential bid and brings a relatively conventional resume to the role.
Experience and Expertise
Bessent has experience in international finance, having made investments based on big-picture economic policy through his own fund, Key Square Capital Management. He is also known for his philanthropy in South Carolina.
Bessent’s Views on Economic Policy
Bessent has defended tariffs, arguing that opposition to them is rooted in political ideology rather than “considered economic thought.” However, he has also characterized Trump’s support for border taxes as a negotiating tool, suggesting the president-elect isn’t necessarily committed to aggressively raising duties.
