President Donald Trump stuffed a key position in his cupboard Monday when the Senate confirmed Scott Bessent, a Wall Road veteran, as Treasury Secretary.

The Senate confirmed hedge fund manager Scott Bessent to be Trump’s prime financial advisor Monday night with a vote of 68-29. He replaces Janet Yellen, an economist who beforehand served as chair of the Federal Reserve.

Bessent takes over the Treasury at a essential time for the financial system and will play an essential position in shaping U.S. commerce coverage in addition to coping with the expiration of the 2017 Trump tax cuts this yr and lengthening the debt ceiling, which the U.S. breached in January.

Tariffs

Trump has set a Feb. 1 deadline to start imposing the tariffs he promised on the marketing campaign path, beginning with tariffs focusing on Mexico and Canada.

In his affirmation listening to, Bessent confronted criticism of the tariffs from senators who stated they may increase costs for shoppers and harm the financial system, as many economists have warned. Bessent defended Trump’s proposed tariffs, saying they might assist nationwide safety and defend American manufacturing.

Monetary markets have wager he’ll be a moderating influence on Trump’s commerce coverage, and will push Trump to the specter of tariffs as a negotiating software as an alternative of truly implementing them.

Taxes and Debt Ceiling

Bessent may additionally signify the White Home as lawmakers in Congress negotiate how the U.S. will deal with two main upcoming deadlines.

On the finish of the yr, Trump’s 2017 tax cuts will expire. Trump has referred to as to increase them and has requested for brand new tax cuts, together with eliminating earnings taxes on suggestions. Nonetheless, extending the cuts will likely be pricey, in response to some analyses, which discovered the tax cuts may put the federal price range trillions more in the red over the subsequent 10 years. Lawmakers will both have to chop spending or enable the nationwide debt to speed up to pay for them.

In the meantime, the clock is ticking for Trump and Congress to take care of the debt ceiling. The U.S. is presently over its congressionally mandated $36 trillion borrowing restrict. The Treasury Division is presently shopping for time by way of «extraordinary» accounting measures, however sooner or later later this yr will likely be unable to pay its money owed until Congress acts, presumably kicking off a major financial crisis.