WASHINGTON (Gray DC) – South Carolina billionaire investor and hedge-fund manager Scott Bessent faced questioning on Capitol Hill Thursday during a Senate confirmation for the role of treasury secretary in the new Trump administration.
Bessent, who was nominated by President-elect Donald Trump back in November, was asked about government spending, taxes, Russian oil sanctions, tariffs and more.
“Today, I believe that President Trump has a generational opportunity to unleash a new economic golden age that will create more jobs, wealth, and prosperity for all Americans,” said Bessent during his opening statement, before the Senate Finance Committee.
He defended the president-elect’s plans to use tariffs on foreign goods, which Trump has proposed to protect U.S. jobs and manufacturing.
Democrats at the hearing said that the tariffs would result in higher prices for American consumers, a concern that many economists have raised. But Bessent argued against that.
“All through the campaign, we heard they weren’t that foreign countries were going to pay it. I think that’s baloney. It’s going to be paid for by workers and small businesses. So your response?” asked Sen. Ron Wyden (D-OR).
“Senator, I would respectfully disagree. And the, history of tariffs and tariff theory, optimal tariff theory does not support what you’re saying,” said Bessent.
Bessent also said that extending the Trump tax cuts (the Tax Cuts and Jobs Act) that were passed during the first Trump administration, is a top priority for him.
“This is pass fail. If we do not the fix these tax cuts, if we do not renew and extend, then we will be facing an economic calamity,” he said.
The investor also faced questions about extending tax cuts for the wealthiest Americans.
“Do you agree that ending the tax cuts for those making more than $400,000 would help close the deficit and reduce our national debt?” said Sen. Raphael Warnock (D-GA).
“Senator Warnock, I do not. I believe that you would capture an inordinate amount of small business people who largely, are in that cohort of $400,000 to $1 million,” said Bessent.
“So there’s no income level for which you would support raising taxes. Is that fair?” asked Warnock.
“There is no income level that I don’t think we should continue the TCGA (Tax Cuts and Jobs Act) there as it was,” said Bessent.
Bessent backed the idea of a federal reserve that is independent from White House influence.
“Does it continue to be your view that the Federal Reserve should be independent of the president?” said Sen. Catherine Cortez Masto (D-NV).
“Of course. And I actually believe that the the notion that President Trump believes he should have influence, there was, I believe, a highly inaccurate Wall Street Journal article saying that the he believed in something to the effect of he should be in the room,” he said.
Bessent also said that the president-elect will not cut social security or Medicare benefits.
“I want to emphasize President Trump has said that Social Security and Medicare, the will not be touched,” he said.
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