Trump’s Treasury Nominee Warns America Is ‘Barreling Towards An Economic Crisis At Year-End’

President-elect Donald Trump’s nominee to lead the Treasury Department, billionaire hedge fund manager Scott Bessent, warned during his confirmation hearing on Thursday that Americans are “barreling towards an economic crisis at year-end.”

Bessent began his opening statement by saying, “I believe that President Trump has a generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans. My life’s work in the private sector has given me a deep understanding of the economy and markets. And while this experience will be invaluable in crafting economic policy, I have long adhered to the principle that you should know what you don’t know and lean on those who do.”

“Having never served in government, I intend, if confirmed, to be in close contact with each of you and your offices and seek your counsel. The Treasury Department plays a critical role in protecting American national security. We must secure supply chains that are vulnerable to strategic competitors, and we must carefully deploy sanctions as part of a whole of government approach to address our national security requirements,” he continued, adding:

And critically, critically, we must ensure that the U.S. dollar remains the world’s reserve currency. Today, Americans face significant challenges in an economy that has not created enough opportunities for working men and women. We have an affordability crisis, a housing shortage, and for the first time in my lifetime, parents feel as though the American dream is slipping away from their children.

The federal government has a significant spending problem driving deficits that have averaged and historically high 7% of GDP during the past four years. We must work to get our fiscal house in order and adjust federal domestic discretionary spending that has grown by an astonishing 40% over the past four years. Productive investment that grows the economy must be prioritized over wasteful spending that drives inflation.

Bessent went on to offer the ominous warning as a means to underscore the need to extend Trump’s tax cuts, “As we begin 2025, Americans are barreling towards an economic crisis at year-end. If Congress fails to act, Americans will face the largest tax increase in history, a crushing 4 trillion tax hike.”

“We must make permanent the 2017 tax, 2017 Tax Cuts and Jobs Act and implement new pro-growth policies to reduce the tax burden on American manufacturers, service workers and seniors,” he argued, concluding:

I’ve already spoken with several members of the committee, as well as leaders of the House, about the best approach to achieving these important goals together. As President Trump has said, we will unleash the American economy by implementing pro-growth regulatory policies, reducing taxes, and unleashing American energy production.

The breadth and depth of our capital markets, along with predictable pro-growth tax policy and smart, updated regulation, will continue to make America the most popular destination in the world for starting, growing and taking public business. And as we rebuild our economy and lay the foundation for the next generation of American competitiveness, we must use all the tools available to realign the economic system to better serve the interest of working Americans.

For too long, our nation has allowed unfair distortions in the international trading system. President Trump was the first president in modern times to recognize the need to change our trade policy and stand up for American workers. If confirmed, I look forward to working with President Trump and members of this committee to do just that. Members of the Committee. These are just some of the many important goals that President Trump has laid out for me and others on his economic team.

I firmly believe that if confirmed and with your counsel and support, 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. I humbly thank you for your consideration, and I’m eager to take your questions.

Watch the clip above via C-SPAN.