President-elect Donald Trump has nominated Scott Bessent to lead the U.S. Treasury Department, and Bessent has pledged to maintain the dollar’s status as the world’s reserve currency. This commitment was made during his prepared testimony.
What Happened: Bessent, who is scheduled to appear before the U.S. Senate Finance Committee on Thursday, emphasized the importance of prioritizing productive investment over “wasteful spending” that could lead to inflation. He stressed the need to secure supply chains and carefully use sanctions to meet national security needs, Reuters reported on Wednesday.
“And critically, we must ensure that the U.S. dollar remains the world’s reserve currency,” he said.
Additionally, Bessent, a hedge fund manager, has supported Trump’s plans for higher tariffs on imports, although he did not mention China specifically in his remarks. Trump has previously threatened significant tariffs on imports from China, Canada, and Mexico.
Bessent also highlighted the necessity for Congress to make permanent the provisions of Trump’s 2017 Tax Cuts and Jobs Act. He warned that failing to do so could result in a historic $4 trillion tax increase. He advocated for “pro-growth policies” to reduce the tax burden on American manufacturers, service workers, and seniors.
Bessent comments come at a time when Trump is reportedly exploring the possibility of issuing an executive order to create a Strategic Bitcoin (CRYPTO: BTC) Reserve (SBR). After providing substantial financial support during the 2024 election, the digital asset industry is gearing up for a major shift in its regulatory landscape. President-elect Trump, once a vocal critic of digital currencies, shifted his stance during his campaign, becoming the first presidential candidate to accept donations in digital assets.
Why It Matters: Bessent’s nomination comes at a time when the dollar’s role as the global reserve currency is under scrutiny. His commitment to maintaining this status aligns with his vision for a “new economic golden age,” as outlined in his testimony.
Meanwhile, Bessent’s financial disclosures reveal a significant stake in the iShares Bitcoin Trust ETF (NASDAQ:IBIT), indicating his interest in cryptocurrencies amid expectations of crypto-friendly policies under the incoming Trump administration.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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