Senate confirms Treasury Secretary Scott Bessent

The US Senate confirmed on Monday Scott Bessent as Secretary of Treasury in President Donald Trump's government, thus giving billionaire investment funds leaders a central role in drafting the new administration's political priorities regarding tax cuts, government spending and management of economic relations with allies and opponents.

As the 79th Secretary of the Treasury, Mr. Bessent will have an impact on tax collection and the 28 trillion dollar treasury debt market, on fiscal policy, financial regulations, international sanctions and foreign investments.

The vote was 68-29, with 16 Democrats supporting his appointment.

Mr. Bessent, 62, has already appeared as a powerful advocate for President Trump's economic agenda, which focuses on lowering taxes and putting high tariffs -- which Democrats and some economists -- argue could undo some of the progress the Federal Reserve has made in putting inflation under control.

At his confirmation session, Mr. Bessent warned that failure to renew a $4 trillion tax cut, which expires at the end of this year, would be a disaster “” for Americans of the middle class and argued that fees would help combat unfair trade practices, increase revenues, and strengthen the United States' influence on international negotiations.

He also rejected the idea that President Trump's policies would be inflationary and said administration efforts to increase oil production would actually help lower prices.

As President Trump's top economic official, Mr. Bessent will face a series of challenges, the most urgent of which will be managing federal government liquidity after the government reached its legal debt limit on the second day of President Trump's duty. Even before taking the oath, the Treasury Department was using extraordinary “measures to avoid violating the debt limit and causing a catastrophic bankruptcy. Mr. Bessent told the senators at his confirmation hearing that there would be no reaction under his direction.

Secretary Bessent will also have to deal with the prospect of increasing budget deficits and increased government debt estimated to reach trillions of dollars, if the renovation of tax cuts and other promised tax reliefs cannot be compensated by increased revenues, or spending cuts. If the precedent continues so far, it will be a central actor who will work with Congress on the size and shape of tax reforms. / VOA