On January 27, 2025, the United States Senate voted 68-29 to confirm Scott Bessent as the new Treasury Secretary. The choice is a significant milestone in President Trump’s administration, as Bessent, a seasoned hedge fund manager and the founder of Key Square Group, takes on the responsibility of crafting the country’s fiscal policies.
Bessent’s confirmation provides both obstacles and opportunity. He will play a critical role in resolving the nation’s increasing debt, which has now topped $36 trillion, as well as managing the federal government’s $711 billion budget shortfall for fiscal year 2025. As Treasury Secretary, Bessent will be in charge of overseeing financial rules, including tax policy, as well as making crucial decisions about international sanctions and investments.
Bessent’s strong support for technology and cryptocurrency innovation is consistent with Trump’s goal for a prosperous, decentralized economy. Bessent, known for his skepticism of central bank digital currencies, has remarked that he feels they are only necessary in countries with few investment options. He has also expressed support for a free-market approach to cryptocurrency, highlighting its importance in ensuring freedom and stimulating innovation.
Tax reform, specifically the potential extension of tax cuts set to expire in 2025, will be another crucial task for Bessent. He has expressed a preference for maintaining these cuts, particularly for higher earnings, while remaining steadfast in his refusal to raise taxes.
With these aims in mind, Bessent is well-positioned to guide US economic policy at a time when domestic and global financial stability are on the line. His nomination indicates a commitment to market-driven growth, technological advancement, and prudent fiscal management.
