Donald Trump’s pick for Treasury Department says dismantling tax cuts will lead to ‘economic disaster’

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Scott Besent told US senators he would use US economic power against geopolitical enemies, as he defended Donald Trump’s tariff threats and pushed for tax cuts and looser regulation at home.

The billionaire hedge fund head, nominated by Trump to be the next US Treasury secretary, on Thursday revealed his most detailed plans for how the incoming administration will seek to reshape the US Treasury. The largest economy in the world.

“We must secure vulnerable supply chains to strategic competitors, and we must deploy sanctions carefully as part of a whole-of-government approach to address our national security requirements. Most importantly, we must ensure that the US dollar remains the world’s reserve currency.” Bessent He said this in a heated confirmation hearing that lasted three hours.

He said that “the most important economic issue today” is renewal tax The cuts to individuals and businesses introduced by Trump in 2017 will be the subject of a fierce battle in Congress this year.

Failure to extend the cuts to people and businesses would spell “economic disaster” for the United States, “and as is always the case with financial instability, that falls on the shoulders of the middle and working class.”

But Besant also made clear comments on international economic policy, including a pledge to support potential sanctions on the Russian oil sector in an attempt to ramp up pressure on Moscow over the sanctions. War in Ukraine.

He added: “If President Trump requests it, and as part of his strategy to end the war in Ukraine, I will be 100% supportive of lifting sanctions, especially on major Russian oil companies, to levels that would push the Russian Federation to collapse.” “The table,” said Besant.

His comments went up Oil pricesWith traders thinking about the possibility of shrinking global crude oil supplies. The price of Brent crude, the global benchmark, rose by more than a dollar after Besant’s statements to more than $81 per barrel. The new administration is also expected to target Iranian and Venezuelan oil with tougher sanctions as Trump seeks to increase economic pressure on US adversaries.

US stocks have risen since Trump’s election victory on November 5, while Wall Street has embraced his agenda, with the heads of the world’s largest banks – who reported huge profits this week – saying optimism about the new administration’s economic plans has unleashed “instincts… Animalism.”

However, executives at major banks who spoke this week warned that Trump’s threats to impose sweeping tariffs may be inflationary.

Picent used his questioning by the Senate Finance Committee — which must approve his nomination before it can be voted on by the full Senate — to defend those plans.

Although he did not provide new details, Besant said Trump would use tariffs to address unfair trade practices, increase US government revenues, and strike deals with other countries.

Picent also said he would push China to buy more U.S. agricultural products, such as corn and soybeans, under the terms of the purchase deal that Trump negotiated with Beijing to ease trade tensions during the Republican leader’s first administration. He added that Trump will continue to aggressively enforce export controls on American goods destined for China.

“We have to have a very rigorous vetting process for anything that can be used in artificial intelligence, in quantum computing and surveillance, in chips,” Besant said.

Regarding the economic outlook, Besant said he believes inflation will continue to approach the Federal Reserve’s 2 percent target, and insisted that the Trump administration will respect the central bank’s independence in monetary policy.

But he warned that the US Treasury would find it difficult to use its “borrowing capacity” in times of crisis due to the deteriorating financial situation in America.

“I’m concerned because the U.S. Treasury Department has been called upon many times to save the nation, whether it’s the Civil War, the Great Depression, World War II, or the recent COVID pandemic,” Bessent said.

“With what we have now, it will be difficult for us to do the same,” he added.