Scott Bessent, a prominent economic adviser to Donald Trump, has addressed concerns regarding Trump’s potential economic policies if re-elected. Bessent assured that Trump would not weaken the U.S. dollar or drastically alter trade policies.
What Happened: Bessent, a hedge fund manager, has emerged as a key figure in Trump’s economic advisory team, despite not holding a position in Trump’s previous administration. He has contributed over $2 million to Trump’s 2024 campaign and is considered a potential candidate for Treasury secretary if Trump returns to office, the Financial Times reported on Monday.
Trump and his running mate, JD Vance, have previously suggested a weaker dollar to enhance exports. However, Bessent emphasized that a new Trump administration would support a strong dollar.
“The reserve currency can go up and down based on the market. I believe that if you have good economic policies, you're naturally going to have a strong dollar,” Bessent said.
Bessent also defended Trump’s proposed tariffs, describing them as “maximalist” positions likely to be softened in negotiations. He asserted, “My general view is that at the end of the day, he's a free trader.”
See Also: S&P 500, Dow Jones Hit New Record Highs As Financial Stocks Soar On Upbeat Earnings
Additionally, Bessent mentioned Trump’s intention to appoint a new Federal Reserve head but assured that Trump would not interfere with its independence. He highlighted Trump’s business acumen and understanding of economics.
Why It Matters: Trump’s economic policies have been a topic of intense debate. His proposal to impose 100% tariffs to enforce dollar dominance has raised concerns about potential economic disruption. According to Commerzbank AG strategist Ulrich Leuchtmann, such a move could lead to “massive disruption” in the global economic system.
Moreover, Trump’s proposal to reduce the federal corporate tax rate from 21% to 15% has sparked debate. While some believe it could boost the economy, others remain skeptical. The Tax Foundation suggests that such a cut could increase U.S. GDP by 0.4% and create approximately 93,000 full-time jobs.
Recently, Trump’s long-standing trade advisor Robert Lighthizer reportedly cautioned investors to prepare for a rapid execution of Trump's tariff proposals if he secures a second term in office.
Read Next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
