Scott Bessent, President-elect Donald Trump’s nominee for Treasury secretary, defended the incoming administration’s economic positions on tax cuts and tariffs in a Jan. 16 hearing before the Senate Finance Committee.
Bessent, CEO and CIO of hedge fund Key Square Group, is widely expected to cruise to confirmation with unanimous support among Republicans who control the Senate. If confirmed, Bessent said he would resign from Key Square Group and divest underlying assets to avoid conflicts of interest.
In his opening remarks, Bessent said Trump has “a generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans.”
He said his life's work in the private sector has given him a deep understanding of the economy and markets. “And while this experience will be invaluable in crafting economic policy, I have long adhered to the principle that you should ‘know what you don't know,’ and lean on those who do,” he told lawmakers. “Having never served in government, I intend, if confirmed, to be in close contact with each of you and your offices, and to seek your counsel.”
Some Democrats may support his nomination, but most on the Finance Committee pressed him on his economic beliefs, including on tax policy.
At the end of 2025, many of the provisions in the Republican’s 2017 Tax Cuts and Jobs Act will expire, which means one of the chief focus areas this year will be on taxes.
Democrats criticized the 2017 bill for disproportionately helping wealthier Americans and corporations, but Bessent disagreed.
“We must make permanent the 2017 Tax Cuts and Jobs Act and implement new pro-growth policies to reduce the tax burden on American manufacturers, service workers and seniors,” he said.
Following a question from Sen. Mike Crapo, R-Idaho, the committee’s chair, Bessent said extending the 2017 tax law “is the single most important issue of the day.”
Bessent was also asked about Trump’s tariff proposals. During the campaign, Trump called for establishing a universal baseline tariff on all U.S. imports of 10% to 20% and a 60% tariff on all U.S. imports from China.
Sen. Ron Wyden, D-Ore., the committee’s ranking member, said the costs of such tariffs would be felt hardest by American consumers.
Bessent said he disagreed with Wyden’s assertion adding, “Foreign manufacturers, especially China, which is trying to export their way out of their current economic malaise, will continue cutting prices to maintain market share.”
The next step in Bessent’s confirmation process is for the Finance Committee to vote on his nomination. If a majority of committee members support his nomination — a vote has yet to be scheduled — it then will head to the full Senate for consideration.
