U.S. Treasury nominee says Trump can usher in 'economic golden age'

by Beiyi SEOW

Donald Trump's nominee for Treasury chief spoke Thursday of ushering in "a new economic golden age," as he faced grilling by lawmakers about the incoming U.S. administration's economic agenda.

Scott Bessent's confirmation hearing comes days before Trump returns to the White House, with the president-elect vowing tax cuts, higher tariffs and a slash to federal spending.

Bessent, a hedge fund manager, is expected to see smooth confirmation to the top economic post, where he would play a key role implementing Trump's economic plan.

On Thursday, he told the Senate Finance Committee that Trump has a "generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans."

"We can usher in a new, more balanced era of prosperity that will lift up all Americans and rebuild communities and families across the country," Bessent said.

In opening remarks, he took aim at government spending and high budget deficits, while stressing the need to secure vulnerable supply chains and deploy sanctions carefully.

Bessent, 62, also stressed the need to make permanent Trump's 2017 tax law -- of which some provisions are set to expire at the end of the year.

"If Congress fails to act, Americans will face the largest tax increase in history, a crushing $4 trillion tax hike," Bessent said.

"We must make permanent the 2017 Tax Cuts and Jobs Act," he added.

He also emphasized "we must ensure that the US dollar remains the world's reserve currency."

While the Treasury Department does not directly implement tariff policies, Bessent is anticipated to help shape the administration's international trade stance.

On the campaign trail, Trump vowed across-the-board tariffs on imports with steeper rates on Chinese goods -- seeing the levies as a means to raise government revenue.

In November, Trump threatened a 100 percent tariff on the BRICS grouping -- which includes Brazil, Russia, India, China and South Africa -- if they undercut the US dollar.

Trump's selection of Bessent -- who is chief executive officer of Key Square Group -- has been seen as a credible and safe choice.

But outgoing Treasury Secretary Janet Yellen warned Wednesday that plans to extend Trump's earlier tax cuts, which remained in place under President Joe Biden, could worsen the country's unsustainable fiscal path.

© Agence France-Presse