Scott Bessent Confirmed as U.S. Treasury Secretary Amidst Economic Challenges
WASHINGTON (AP) — Scott Bessent, a billionaire investor, has officially been confirmed by the U.S. Senate as President Donald Trump’s new treasury secretary. Bessent, who was confirmed with a 68-to-29 vote, including support from 16 Democratic senators, will be responsible for balancing tax cuts, managing deficits, and overseeing a tariff plan designed to sustain economic growth.
Bessent, a South Carolina resident, marks a historic appointment as the first openly gay individual to hold the position. Previously a supporter of Democratic causes and an associate of George Soros, Bessent has since aligned himself with Trump’s economic strategies.
Key among Bessent’s objectives is to ensure the extension of the Tax Cuts and Jobs Act provisions that are due to expire at the end of 2025. He has emphasized the potential economic turmoil if these are not renewed. His economic agenda also includes advocating for 3% annual growth, reducing deficits, and boosting domestic oil production by 3 million barrels daily.
Senator Mike Crapo, a Republican from Idaho and chair of the Senate Finance Committee, described Bessent’s confirmation as “one of the easiest votes we could ever take.” However, the confirmation did not come without controversy.
Bessent faced criticism from some Democrats over allegations of unpaid taxes. It is claimed that he owes nearly $1 million in Medicare taxes linked to his hedge fund’s limited partnership. Bessent disputes this liability and is currently engaged in litigation with the IRS. He has pledged to settle the taxes if the court rules against him.
Despite policy disagreements, some Democrats, including Senator Chris Coons of Delaware, have expressed support for Bessent. Coons stated, “While I disagree with many of his policy positions, particularly his support for extending tax cuts for the wealthy and President Trump’s tariff threats, I hope that he will focus the Treasury Department on bringing down costs for middle-class Americans.” Coons also commended Bessent’s commitment to maintaining U.S. investments in global financial institutions like the World Bank and the International Monetary Fund.
President Trump took considerable time to finalize his choice for the treasury secretary, considering other candidates such as John Paulson and Howard Lutnick, who was ultimately chosen as commerce secretary.
The role of the treasury secretary includes advising the president on fiscal policies and managing the national debt. Bessent will also explore the feasibility of establishing an External Revenue Service to handle tariff revenues from foreign nations — an initiative announced by Trump on Truth Social.
Tariffs are a significant component of Trump’s economic plan, with proposed levies as high as 25% on imports from countries like Canada and Mexico, and 60% on Chinese goods.
Bessent’s tenure begins against the backdrop of a rising U.S. debt. His predecessor, Janet Yellen, had cautioned congressional leaders about potential measures to avoid reaching the debt ceiling, actions which the Treasury has since enacted.
During his confirmation hearings, Bessent affirmed his support for maintaining the IRS’ Direct File program for the 2025 tax season. This program allows taxpayers to file returns directly with the IRS for free. Despite opposition from some Republican lawmakers who consider the program redundant, Bessent believes it has value.
Moreover, Bessent has indicated that the Federal Reserve should operate independently from presidential influence and advocated for stronger U.S. sanctions on Russian oil.
