Bessent says he will work with Trump and Sen. Warren to remove the debt ceiling
Bessent told senators he was open to eliminating the debt ceiling.
The cap is a legal limit on the government’s ability to issue new bonds and has become an area of political brinkmanship in recent years. President Trump said in December that the debt ceiling should be lifted, a position echoed by some liberal lawmakers.
“If President Trump takes office and I’m confirmed, if he wants to remove the debt limit, I’ll work with him and you,” Bessent told Democratic Sen. Elizabeth Warren of Massachusetts. I’m going to do it,” he said.
Eliminating the debt ceiling would mean no new spending by the federal government.
— Jesse Pound
Bessent says there’s ‘no reason’ for the US to have a central bank digital currency
U.S. investor and hedge fund manager Scott Bessent testifies during a Senate Finance Committee hearing on his nomination for Secretary of the Treasury on January 16, 2025 at the Capitol in Washington, DC.
Andrew Caballero-Reynolds | AFP | Getty Images
Bessent said he doesn’t think the Treasury Department needs to continue considering the possibility of creating a central bank digital currency.
“I see no reason for the United States to have a central bank digital currency. In my opinion, a central bank digital currency is for countries that have no other investment options,” Bessent said.
He said a digital currency makes more sense for countries that tend to hold other foreign currencies, such as the Chinese yuan.
“If you hold the U.S. dollar, you have a variety of very safe U.S. assets,” Bessent said.
President Joe Biden’s 2022 executive order called on the government to study a digital dollar.
Bessent refuses to support tax hikes on high earners


In an exchange with Democratic Sen. Raphael Warnock of Georgia, Bessent repeatedly refused to say he was open to raising taxes on high-income Americans. He reiterated his support for extending the Tax Cuts and Jobs Act from President Trump’s first term.
“There’s no income level at which I don’t think the TCJA should continue as is,” Bessent said.
— Jesse Pound
Bessent says the Fed should be independent.


Bessent said he believes the Federal Reserve should be able to set interest rates independently of the White House.
“The FOMC (Federal Open Market Committee) should be independent when it comes to making monetary policy decisions,” Bessent said.
— Yun Lee
Bessent says President Trump’s policies won’t increase inflation


Bessent said he expects inflation to move “much closer” to the Federal Reserve’s 2% target under the Trump administration, but that decisions by Congress and the central bank could influence the direction of inflation. He acknowledged that.
Asked by Sen. Maggie Hassan, Democrat of New Hampshire, if she thought any of the policies proposed by Mr. Trump would increase inflation, Mr. Bessent said, “I can’t think of any right away.”
Tariffs and government spending proposed by the Trump campaign raised concerns among some economists and lawmakers that a Republican victory could increase upward pressure on inflation.
— Jesse Pound
Bessent says he aims to tighten sanctions on Russia


Russia, especially oil companies, may be counting on tougher sanctions under the Trump administration.
“If Russian Federation officials are monitoring this confirmation hearing, they say that if I am confirmed and President Trump demands it as part of his strategy to end the war in Ukraine, I will agree 100%.” “In particular, we will raise sanctions against the Russian oil majors to a level that will bring the Russian Federation to the negotiating table,” Bessent said.
—Jeff Cox
Bessent says US spending is out of control


Bessent said during his confirmation hearing that the United States has pressing spending problems that are spiraling out of control.
“The United States doesn’t have a revenue problem. We have a spending problem,” Bessent said. “One of the things that brought me out from behind the desk and out of my quiet life on this campaign was the idea that this spending is out of control.”
The combination of rising fiscal costs, continued increases in spending, and declining tax revenues has led to a sharp increase in the budget deficit, pushing the national debt to more than $36 trillion.
The deficit for the three months of fiscal 2025 increased to $710.9 billion, an increase of approximately $200 billion (39.4%) from the same period last year.
“It’s not a recession, it’s not a war, and we’ve never seen anything like this before,” Bessent said. “The Treasury Department, along with the entire government and Congress, has used its borrowing capacity to save the Commonwealth, save the world, save the American people, and it’s difficult for us to do the same with what we have now. I guess.”
— Yun Lee
Bessent says Social Security is ‘untouchable’


Bessent took advantage of a question about Social Security to say there are no plans to lower payments from the program under the Trump administration.
“I want to emphasize that President Trump has said he won’t touch Social Security and Medicare,” Bessent said.
The potential for cuts to Social Security over the next decade, based on current funding projections, is one of the issues looming over the deficit debate in Washington. Mr Bessent said the government needed to put a “short-term structure” in place before considering other ideas, such as additional funds to support entitlement spending.
— Jesse Pound
Bessent predicts economy will come to a ‘sudden halt’ if tax cuts are not extended
Scott Bessent, an American investor and hedge fund manager, gives an opening statement during a Senate Finance Committee hearing on his nomination for Secretary of the Treasury on January 16, 2025, at the Capitol in Washington, DC.
Andrew Caballero-Reynolds | AFP | Getty Images
In response to an early question during his confirmation hearing, Bessent said extending the so-called Trump tax cuts would be a top economic priority for the new administration.
“This is the single most important economic issue of our time,” he said in response to a question about updating the 2017 Tax Cuts and Jobs Act. “This is pass or fail. If we don’t fix the tax cuts, if we don’t renew them, if we don’t extend them, we’re going to face economic disaster. And as always, the middle class and the working We will face financial insecurity that will hit the class.”
He added: “We’re going to see a huge tax increase for the middle class. The child tax credit will be cut in half.” “The deduction will be cut in half. … It could be stopped suddenly.”
— Jeff Cox
Bessent says Trump administration’s policies will ‘unleash the American economy’


Mr. Bessent has completed his opening statement and is now taking questions from senators.
The candidates’ opening statements were light on policy details but generally aligned with President Trump’s campaign arguments.
“As President Trump has said, we will unleash the American economy by implementing pro-growth regulatory policies, cutting taxes, and unlocking America’s energy production. “The breadth and depth of our capital markets, along with our strict regulations, will continue to make the United States the most popular destination in the world to start, grow and take a business public,” Bessent said.
— Jesse Pound
Investors welcomed Bessent’s selection
As Bessent prepares to testify before the Senate, he has already received votes of confidence from investors.
The stock market rose shortly after President Trump announced Bessent as his nominee in late November as part of a long post-election market rally.
The bond market also rose, iShares 20+ Years Government Bond ETF (TLT) It rose 2.6% on Nov. 25, the first trading day after President Trump’s announcement. Bond prices move inversely to yields.
Mr. Bessent’s experience in the hedge fund world and familiarity with Wall Street may have helped ease investor concerns that President Trump’s policies would destroy the market.
— Jesse Pound
Mr. Bessent is reportedly involved in a plan to phase in tariffs on President Trump.
President-elect Donald Trump’s Treasury Secretary nominee Scott Bessent arrives for a meeting with Sen. Mike Crapo (R-Idaho) at the Dirksen Senate Office Building in Washington, DC, on December 10, 2024.
Kevin Dietch Getty Images
Bloomberg News reported earlier this week that Bessent was one of Trump’s advisers working on a plan to impose more gradual tariffs.
The plan could include a schedule for gradually increasing tariffs on trading partners by about 2% to 5% a month, Bloomberg reported, citing people familiar with the matter. The proposal has not yet been finalized or submitted to President Trump, people familiar with the matter told Bloomberg.
Kevin Hassett, who will serve as director of the National Economic Council, and Stephen Millan, who was nominated to chair the Council of Economic Advisers, also participated in the discussion, Bloomberg reported.
— Yun Lee
Bessent promises to protect U.S. supply chain and dollar
Mr. Bessent has not mentioned tariffs, but he has pushed for strong policies to protect U.S. interests overseas.
“We must ensure our supply chains are vulnerable to strategic competitors and we must carefully deploy sanctions as part of a whole-of-government approach to addressing national security requirements. And importantly, we must ensure that the U.S. dollar remains the world’s foreign exchange reserve currency,” Bessent said in prepared remarks for testimony before the Senate Banking Committee. mentioned in.
President Trump has promised to impose uniform tariffs on the United States’ global trading partners, but he may adjust tariffs on certain goods and services.
— Jeff Cox