The U.S. Senate on Monday confirmed Scott Bessent as President Donald Trump’s Treasury Secretary, marking a pivotal moment in shaping the new administration’s economic policies focused on tax cuts and spending management. With a significant role in navigating economic relationships with both allies and adversaries, Bessent steps into the position as the 79th Treasury Secretary.
At 62, Bessent brings extensive experience from his career in finance, having worked for notable investors like George Soros and Jim Chanos, and founded his own firm, Key Square. His influence will extend over the nation’s tax collections and the staggering $28 trillion Treasury debt market, impacting fiscal policy and financial regulations.
The Senate vote was 68-29, with 16 Democrats supporting Bessent’s nomination. He is anticipated to be a vigorous proponent of Trump’s economic agenda, which emphasizes reducing taxes and imposing significant tariffs. Critics, including some economists, argue that these measures could hinder the Federal Reserve’s efforts to manage inflation.
During his confirmation hearing, Bessent cautioned that failing to renew $4 trillion in tax cuts set to expire at the end of the year would be a “calamity” for middle-class Americans. He also argued that tariffs could mitigate unfair trade practices, enhance revenue, and strengthen U.S. leverage in international negotiations.
Bessent refuted claims that Trump’s policies would exacerbate inflation, asserting instead that increased oil production could help lower prices. As the leading economic official of the Trump administration, he will face immediate challenges, particularly managing federal cash flows after the government reached its statutory debt limit on his second day in office. Prior to his swearing-in, the Treasury Department was already employing “extraordinary measures” to prevent breaching the cap and risking a catastrophic default. Bessent assured senators that there would be no default under his watch.
Moreover, Bessent will contend with rising budget deficits and government debt projected to reach trillions unless tax cut extensions are countered by revenue increases or spending reductions. He is expected to play a central role in collaborating with Congress on tax reform.
Over 60% of the federal debt is projected to roll over during his tenure, with issuance growth exceeding $2 trillion annually since the COVID-19 pandemic. Recent worries about increasing deficits and persistent inflation have led to rising long-term bond yields, which in turn have driven the average rate on 30-year fixed-rate mortgages above 7%, a critical concern for Americans seeking to purchase homes.
In his confirmation hearing, Bessent criticized government spending as “out of control,” although the extent of his influence to curb it remains uncertain. He supported Trump’s commitment to leave Social Security and Medicare untouched, two of the largest expenditures in the federal budget, alongside interest expenses determined by market rates, which the Treasury does not control.
Born and raised in South Carolina, Bessent continues to enjoy farm radio. He holds a bachelor’s degree in political science from Yale University. Notably, he is not only fifth in line to the presidency but also the highest-ranking openly gay federal official in U.S. history. Bessent is married and has two children.
