On January 16, 2023, Scott Bessent was confirmed as the U.S. Treasury Secretary, receiving Senate approval with a vote of 68-29. His confirmation marks a significant moment in U.S. politics, as he is the first openly gay Cabinet official in a Republican administration. This historic appointment has been praised by various LGBTQ organizations, reflecting a step forward for representation within the party [284e5cf8].
Bessent, a billionaire hedge fund manager and founder of Key Square Capital Management, has a history of supporting President Trump's economic policies. His economic plan, often referred to as the '3-3-3' strategy, aims to achieve a 3% federal budget deficit, 3% GDP growth, and an increase of 3 million barrels of oil production daily. He has emphasized the importance of maintaining the U.S. dollar's status as the world's reserve currency and expressed his commitment to controlling inflation and managing the national debt [529a6a00].
In his confirmation hearings, Bessent highlighted the need for tax cuts and tariffs, stating that the U.S. has a 'spending problem' and advocating for spending cuts to offset the costs of extending tax cuts. He has also pledged to raise U.S. oil production, which he argues is crucial for national security and economic stability [284e5cf8].
Bessent's pro-crypto stance has garnered attention, as he opposes central bank digital currencies (CBDCs) and has joined the Presidential Working Group on Digital Asset Markets. His approach is seen as favorable for the cryptocurrency sector, which has been seeking clarity and support from regulators [bf4c7d96].
Additionally, Bessent has proposed a universal tariff starting at 2.5%, which could potentially rise to 20%, aimed at boosting domestic industries and managing inflation. This proposal aligns with his broader economic agenda and reflects the administration's focus on protecting American jobs and industries [bf4c7d96].
Bessent's economic leadership is expected to focus on national security, particularly in relation to China and Iran. He has labeled China as the 'most unbalanced economy' and noted its current severe recession, advocating for a balanced approach to trade. He plans to impose sanctions on Iran, which has seen a significant increase in oil exports since Trump's departure, and aims to raise domestic production while targeting 'bad actors' through sanctions [529a6a00].
As Bessent prepares to take on his new role, he is expected to face intense scrutiny regarding his views on taxes, tariffs, trade, and cryptocurrency regulation, all of which are pivotal to the administration's economic strategy. His extensive experience in finance and macroeconomic strategies positions him to navigate the complex landscape of U.S. economic policy as he seeks to implement Trump's vision for the economy [529a6a00].
In a related development, cryptocurrency exchange KuCoin has settled for $300 million after operating without a license, highlighting the ongoing regulatory challenges in the digital asset space [bf4c7d96].