WASHINGTON: Scott Bessent, US President-elect Donald Trump’s choice to head the Treasury Department, on Wednesday vowed to ensure that the dollar remains the world’s reserve currency as he laid out a vision for a “new economic golden age”.
Bessent, who faces questioning before the US Senate Finance Committee on Thursday, said in prepared testimony that the new Trump administration must prioritize productive investment that grows the economy over “wasteful spending that drives inflation.”
“We must secure supply chains that are vulnerable to strategic competitors, and we must carefully deploy sanctions as part of a whole-of-government approach to address our national security requirements,” Bessent said in the remarks.
“And critically, we must ensure that the US dollar remains the world’s reserve currency.”
Bessent, a hedge fund manager who has advocated for Trump’s plans to impose significantly higher tariffs on imports, did not single out China in his remarks, but he has previously said China’s trade practices have hollowed out American industry.
Trump has threatened a 60% tariff on imports from China and a 10% duty on global imports.
Trump has also said he would impose 25% duties on Canadian and Mexican imports, until those two countries halt the flow of illegal immigrants and fentanyl into the United States.
$4 trillion tax hike
Bessent also said the administration and Congress need to “make permanent” the expiring provisions of Trump’s 2017 Tax Cuts and Jobs Act.
“If Congress fails to act, Americans will face the largest tax increase in history, a crushing $4 trillion tax hike,” Bessent said.
The Trump administration and Congress also need to implement “pro-growth policies to reduce the tax burden on American manufacturers service workers and seniors,” he said.
The latter policies refer to Trump’s campaign promises to lower the corporate tax rate to 15% from 21% for companies manufacturing products in the United States, and to exempt income from tips and Social Security from taxation.
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Bessent said that with support from Congress, the Trump administration could usher in a new, more balanced era of prosperity for Americans that he called “a generational opportunity to unleash a new economic golden age”.
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