#Treasury nominee warns of deficit risk#

U.S. Treasury Secretary nominee Scott Bessent warned at a Senate hearing that the country faces an economic crisis that would hit the middle class and working families hard if major provisions of the 2017 Republican tax cuts are not extended past their expiration at the end of this year. He emphasized the importance of tackling the budget deficit, noting that non-essential spending, outside of programs like Social Security and Medicare, has grown by a staggering 40 percent over the past four years. Bessent also said that federal debt “will not default” under his watch and that he respects the Federal Reserve’s independence on monetary policy. He also expressed support for expanding sanctions on Russia’s oil companies. Bessent’s comments suggest that he will prioritize addressing the budget deficit and taking steps to restore fiscal order. He highlighted the economic risks posed by the expiration of the tax cuts and called for deficit control by adjusting domestic non-essential spending. His comments also indicate that he will continue to support the Fed’s independence and take steps to counter Russian economic aggression.