On Thursday morning Eastern Time, the U.S. Senate Finance Committee will hold a hearing to consider President-elect Trump's nomination for Treasury Secretary, Scott Bessent. According to the prepared speech, Bessent will emphasize at the hearing that maintaining the U.S. dollar's status as the global reserve currency is crucial, as it is not only vital for the stability of the American economy but also a core component of national security.
Bessent will state at the hearing: "We must ensure the security of supply chains susceptible to strategic competitors' attacks and judiciously use sanctions as part of an overall national security policy." He further points out that ensuring the dollar continues as the world reserve currency is a top priority for U.S. economic policy.
This stance aligns with Trump's economic policy. Trump has repeatedly criticized the impact of the dollar's appreciation on American manufacturing and has promised measures to maintain the dollar's global dominance. His administration considered intervening in exchange rate management to boost U.S. economic competitiveness. Moreover, Trump has consistently emphasized the importance of reassessing and adjusting trade policies, attempting to revive American manufacturing through tariffs and deregulation.
While the dollar's position as the global reserve currency remains stable, the BRICS countries' recent efforts to challenge its dominance have attracted attention. Bessent writes in his speech: "We cannot ignore potential threats from allies and competitors, and we must prioritize productive investment for economic growth over inflation-driven wasteful expenditure."
The 62-year-old Bessent has extensive financial and investment experience, is a Yale University graduate, and has worked for billionaire George Soros, achieving notable success in analyzing macroeconomic and geopolitical risks. He is widely known in financial circles for short-selling the pound and yen, and he is also a significant advisor to Trump's 2024 campaign, donating over $2 million and actively participating in fundraising activities.
If approved by the Senate, Bessent will become the top economic policymaker in the U.S. and plans to promote the continuation of the large-scale tax cuts implemented by Trump in 2017. He also advocates for imposing tariffs and easing domestic regulations to further enhance the global competitiveness of American companies and to control domestic inflation.
It is noteworthy that Bessent is a staunch supporter of the cryptocurrency industry. He once advised Trump to designate the next Federal Reserve Chairman in advance as a "shadow chairman" to marginalize the influence of the current Chairman Powell, stating that this would provide clearer policy expectations to the market.
Overall, Bessent's policy position not only continues the economic direction of the Trump administration but also places special emphasis on the core position of the dollar in the international monetary system. It aims to defend national interests by strengthening America's economic and strategic competitiveness.
