US Treasury nominee says Trump can usher in ‘economic golden age’

WASHINGTON, JAN 17 (AFP/APP/DNA):Donald Trump’s nominee for Treasury chief defended potential tax cuts and tariffs Thursday, telling lawmakers at his confirmation hearing that the president-elect could usher in “a new economic golden age.”

Scott Bessent’s appearance before the Senate Finance Committee, days before Trump returns to the White House, saw him fielding questions on issues that ranged from sanctions to central bank independence and competition with China.

Bessent, a hedge fund manager, faced grilling by policymakers but is expected to see smooth confirmation to the top economic post, where he would play a crucial role implementing Trump’s economic vision.

Already, the president-elect has vowed tax cuts, higher tariffs and a slash in federal spending.

Bessent said Thursday that Trump has a “generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans.”

“We can usher in a new, more balanced era of prosperity that will lift up all Americans and rebuild communities and families across the country,” he added.

He took aim at government spending and high budget deficits while stressing the need to secure vulnerable supply chains and deploy sanctions carefully.

Bessent, 62, also raised the need to make permanent Trump’s 2017 tax law — of which some provisions are set to expire at the end of the year.

“If Congress fails to act, Americans will face the largest tax increase in history, a crushing $4 trillion tax hike,” Bessent said.

“If we do not renew and extend, then we will be facing an economic calamity,” he cautioned, noting the middle and working classes would be hard-hit.

If confirmed, Bessent said he would support strengthening sanctions, “especially on the Russian oil majors,” as a means to end war in Ukraine.

He suggested that constraints in American energy supplies were a reason the world’s biggest economy was reluctant to apply “muscular sanctions” on Moscow or Tehran — adding that boosting production could squeeze both countries.

On other policies, he disagreed that Trump’s pledges for sweeping tariffs on imports would be paid for domestically. The president-elect sees levies as a means to raise government revenue.

While the Treasury has a less direct hand in tariff policy than other agencies, Bessent is anticipated to help shape the administration’s international trade stance.

He said tariffs can be used to remedy unfair trade practices or in negotiations on issues like the fentanyl crisis.