Scott Bessent, Trump’s Treasury Secretary Pick, Grilled on Tax Cuts, Tariffs: NPR

American investor and hedge fund manager Scott Bessent testifies before a Senate Finance Committee hearing on his nomination to become Treasury Secretary on January 16, 2025.

ANDREW CABALLERO-REYNOLDS/AFP via Getty Images/AFP

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ANDREW CABALLERO-REYNOLDS/AFP via Getty Images/AFP

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WHO: Scott Bessent

Nominated for: finance minister

You may know them from: The long-term investor and the hedge fund manager was little known outside of Wall Street until he became one of the top financial advisers to President-elect Donald Trump’s campaign.

• Bessent is a former protégé of George Soros, the billionaire investor and Democratic mega-donor.
• After Trump won the November election, Bessent won one unusually public – and messy – competition to be nominated for the role of finance minister.
• His husband and children sat behind Bessent at today’s hearing. If confirmed, he would become the first openly gay Senate-confirmed cabinet official in a Republican administration.

What this role does: The Minister of Finance advises on economic policy and the financial system. If confirmed, Bessent would be responsible for implementing Trump’s proposed economic policies, including tax cuts and sweeping tariffs.

Here’s what happened at the hearing

Trump’s promised tax cuts and their potential impact on the US economy took center stage at Bessent’s confirmation hearing.

“This is the most important economic issue of the day,” Bessent told members of the Senate Finance Committee. “This is pass-fail. If we don’t fix these tax cuts, if we don’t renew and extend, then we’re going to face an economic disaster, and as always, with financial instability falling on the middle and working class.”

Trump overhauled the tax code during his first administration, in 2017. The changes are largely set to expire this year — meaning his second administration will have an opportunity to reshape tax policy again in the coming years.

Over more than three hours, Bessent calmly fielded questions from Democrats and praise from Republicans. Late. Mike Crapo, the Idaho Republican who now chairs the committee, praised Bessent for his “very, very forthright, polite and honorable” response, as well as his underlying qualifications for the job: “Your background, your training, everything is tailor-made for this role.”

Democrats repeatedly pressed Bessent over the impact of Trump’s proposed tax cuts on the national deficit and on income inequality in the United States. The nonpartisan Committee for a Responsible Federal Budget has estimated that an extension of the 2017 law would increase the national debt by more than 4 trillion dollars over the next 10 years.

“We want a tax bill that gives everyone in America a chance to get ahead … and there’s a long way to go to get that done,” Sen. Ron Wyden, D-Ore., said in closing remarks.

Bessent also questioned many of Trump’s other proposed economic policies. Tariffs have been a particularly contentious issue: Economists warn that Trump’s sweeping proposals may restart inflation.

But Bessent downplayed those concerns. At one point, Sen. Maggie Hassan, DN.H., asked Bessent if he thought any of Trump’s economic policies would increase inflation.

“Nothing that I can immediately think of,” Bessent replied.

A South Carolina native turned Wall Street investor, Bessent repeatedly claimed he would prioritize Main Street consumers over his wealthy peers.

“I believe Wall Street has done well the last few years and Main Street has suffered. I think it’s Main Street’s time,” Bessent said.

Bessent owns assets worth at least 500 million dollarsand potentially much more, according to his personal financial information. If confirmed, he would be a member of richest White House ever.

In his farewell address Wednesday night, President Biden warned “an oligarchy is taking shape in America of extreme wealth, power and influence that literally threatens our entire democracy, our basic rights and freedoms and a fair chance for everyone to get ahead.”

At Thursday’s hearing, Vermont Sen. Bernie Sanders, an independent who caucuses with Democrats, asked Bessent if he agreed with Biden. Bessent did not directly answer the question.