#Treasury Secretary Nominee Discusses Budget Deficit#
Hot Topic Overview
Overview
Treasury Secretary nominee Scott Bessent expressed grave concern over the budget deficit during his Senate confirmation hearing, arguing that the U.S. would face an economic crisis if the 2017 Republican tax cuts are not extended beyond their end-of-year expiration. He emphasized the importance of addressing the budget deficit and said he would work to “restore fiscal order” by trimming domestic non-essential spending. He also expressed support for expanding sanctions against Russian oil companies and reiterated his respect for the Federal Reserve’s independence on monetary policy.
Ace Hot Topic Analysis
Analysis
Treasury Secretary nominee Scott Bessent expressed concern about the budget deficit during his Senate hearing, emphasizing the need to address the issue. He noted that the U.S. would face an economic crisis that would disproportionately harm the middle class and working families if most of the 2017 Republican tax cuts were not extended after their expiration at the end of this year. Bessent argued that the U.S. needs to "restore fiscal order" by adjusting non-essential domestic spending, pointing out that such spending, excluding entitlements like Social Security and Medicare, has increased an alarming 40% in the last four years. He also stressed respecting the Federal Reserve's independence on monetary policy, stating that under his management, the federal government's debt "will not default." Bessent also supported expanding sanctions on Russian oil companies. His statements suggest that he will prioritize addressing the budget deficit, taking steps to control government spending while upholding the Fed's independence.