Treasury Secretary nominee Scott Bessent is on track to be confirmed following a confirmation hearing Thursday lacking the theatrics some of his would-be Trump administration colleagues have faced, with questions largely keeping to policy issues like the federal budget and trade tariffs.
A veteran hedge fund manager who entered President-elect Donald Trump's
"As we begin 2025, Americans are barreling towards an economic crisis at year's end," he said, urging Congress to extend the reductions or face "a crushing $4 trillion tax hike."
And while he's viewed by the investing class as a market savant who may temper Trump's wilder objectives, Bessent signaled full alignment with the incoming US leader. "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."
It's unclear when the Republican-controlled Senate will vote on his nomination. While Democrats have suggested they will put up staunch opposition to some of Trump's cabinet picks — such as Defense Secretary-nominee Pete Hegseth — no Democratic committee member Thursday stated specific objections to Bessent taking the Treasury job.
If anything, Elizabeth Warren, the Massachusetts Democrat known for hard-hitting questioning, even pointed out where she and the incoming administration may be aligned: Eliminating the debt limit.
"There we are — Donald Trump and Elizabeth Warren are singing from the same hymnal," she said to Bessent during the hearing. She was referring to a comment from the incoming president last month saying he'd support
The nominee's husband and two children were present during the hearing, which lasted more than three hours. In a wide-ranging series of questions from roughly two dozen senators, Bessent, 62, provided clues to Trump's economic agenda, from his views on China, the use of tariffs and the prospect of dialing up economic sanctions on the Russian oil industry to end the war in Ukraine.
Bessent vowed that the federal government "is not going to default" on its debt under his watch and that he respected the central bank's independence over monetary policy.
He warned that the U.S. faces an economic crisis that will hammer middle- and working-class people if the tax cuts expire as scheduled at the end of 2025, saying it's "the single most important economic issue of the day — this is pass/fail."
With his comments on taxes, Bessent drew an immediate contrast with outgoing Treasury Secretary Janet Yellen, who said on Wednesday that policies including a full extension of the 2017 cuts enacted under Trump "could undermine our country's strength, from the resilience of the Treasury market to the value of the dollar, even provoking a
Bessent said that "if we do not fix these tax cuts, if we do not renew and extend, we will be facing an economic calamity. And as always with financial instability, that falls on the middle-class people."
Personal journey
A South Carolina native, Bessent shared his rags-to-riches personal history. Because his father twice declared bankruptcy, he has held a job since the age of nine. Later, he attended Yale University. Now, he has assets worth at least
If confirmed, Bessent will be the first openly gay Treasury secretary. He related on Thursday that this is his third attempt at public service, after his sexual orientation precluded him from attending the U.S. Naval Academy and from joining the Foreign Service.
"I sit here knowing that President Trump chose me because he believes I'm the best candidate — not because of my sexual preference," Bessent said.
The Treasury secretary has a large remit, ranging from national security matters, oversight of the $28 trillion Treasuries market, sanctions, financial regulation and terrorism to financial intelligence. With such a broad job description to study for, and no government experience to rely on, Bessent at times appeared rattled by the questioning on Thursday. The hearing setup itself is intimidating: Nominees are seated at a table almost two feet lower than a U-shaped dais where senators are arranged.
Bessent's hearing was seen by many Treasury-watchers as an easier one than his predecessors have faced. Senators didn't ask him about key policies in the agency's purview and for the U.S. economic outlook, like bringing Fannie Mae and Freddie Mac out of government control, debt issuance and institutions like the International Monetary Fund and World Bank.
Fed, China
Bessent occasionally asked for questions to be clarified, and was unsure how to answer a question about whether he would recommend cutting Medicaid, a federal health program for lower-income households. He eventually told New Mexico Democrat Ben Ray Luján, "I will get back to you on this."
Still, he demonstrated command of policy areas that will be firmly in his wheelhouse if he's confirmed as Treasury chief. He gave a clear and — on the part of many market participants — much-desired response backing the independence of the Federal Reserve when it comes to setting interest rates. Trump last fall suggested he wanted to have a "say" on monetary policy.
Bessent also unpacked his views on China and the use of tariffs, answering questions with stark language. "The Chinese economy is the most imbalanced, unbalanced economy in the history of the world. They're using their surpluses to fund their military machine."
"They are in a severe recession/depression," he said. Rather than addressing domestic ills, China's leadership "is trying to export their way out of their current economic malaise." He highlighted that the labor share of income in the US tumbled from around 69% in 2000 to about 60% today after the "shock" from trade with China.
Data released on Friday in Beijing showed economic growth in 2024 hit the government's 5% target thanks in large part to a last-minute stimulus and booming exports. Bloomberg calculations showed nominal growth, which is unadjusted for falling prices across the economy, expanded 4.2% — the slowest pace since 2020, reflecting the impact of persistent deflation.
Spending cuts
Bessent also gave a window into his personal style, often going off script to handle the broad range of questions. He quipped that his family is probably weary of hearing his refrain "no data, no opinion."
And when Senator Bernie Sanders, an independent from Vermont who caucuses with Democrats, grilled him over whether the U.S. was soon going to be run by oligarchs — drawing on President Joe Biden's
Although Bessent didn't name them, Biden two weeks ago awarded George Soros — for whom Bessent previously worked — and David Rubenstein.
In his prepared remarks, Bessent emphasized the importance of addressing the budget deficit, saying the U.S. "must work to get our fiscal house in order" by adjusting domestic discretionary spending. He said that discretionary spending — outlays aside from entitlements including Social Security and Medicare — had soared by an "astonishing 40% over the past four years."
Bessent underscored that the popular entitlement programs for older Americans aren't going to end up on the chopping board. "I want to emphasize that President Trump has said that Social Security and Medicare will not be touched," he said.
"One of the tragedies of this blowout in the budget deficit is that we have to get our short-term house in order," Bessent added.
Bessent declined specifically to endorse Warren's call to eliminate the federal debt limit, while saying that if Trump wanted to get rid of it, he would then work with the president and Warren on the idea.
But he did make clear what wouldn't happen on his watch.
"The United States is not going to default on its debt if I am confirmed."
