US President-elect Donald Trump’s choice to head the Treasury Department, Scott Bessent, has vowed to ensure that the dollar remains the world’s reserve currency while promoting economic growth.
In prepared testimony, Bessent emphasized the need to prioritize productive investment over “wasteful spending” and highlighted the importance of securing critical supply chains vulnerable to strategic competitors. He also called for a more balanced approach to address national security requirements, including deploying sanctions carefully.
Bessent has expressed support for Trump’s plans to impose tariffs on imports from countries like China, with which he previously linked hollowing out American industry. The proposed tariffs aim to reduce the trade deficit and promote domestic industries.
The administration and Congress need to make permanent the provisions of the 2017 Tax Cuts and Jobs Act, Bessent warned, or face a $4 trillion tax hike that would affect Americans. He advocated for pro-growth policies to reduce the tax burden on American manufacturers, service workers, and seniors, including lower corporate tax rates and exemptions from taxation on tips and Social Security.
Bessent sees an opportunity for a “new economic golden age” with support from Congress, which he believes can usher in a more balanced era of prosperity for Americans.
Source: https://www.reuters.com/markets/us/trumps-us-treasury-pick-bessent-says-dollar-must-remain-worlds-reserve-currency-2025-01-16