New finance minister Bessent: US budget deficit should drop drastically!
New finance minister Bessent: US budget deficit should drop drastically!
The appointment of Scott Bessent as the new US finance minister was officially confirmed on March 10, 2025. The former hedge fund manager and founder of the Key Square Group is a prominent member of President Donald Trump's government team. The Senate voted 68 votes for better, which is a broad support of his politician career. Bessent Chief Investment Officer was previously at Soro's Fund Management and began his career with the well -known investor Jim Rogers. His taking office fell in January 2023.
The main goal is to reduce the US budget deficit, which is currently over 6.6% of the gross domestic product (GDP). At the moment, the deficit is $ 8,133 billion, which represents the third largest new debt in US history. The country's debt is now around 120% of GDP, while the annual interest payments are over $ 1 trillion. In his hearing, Bessent emphasized that he predicts a "golden age" for the US economy, supported by tax cuts, reduction in government expenditure and the introduction of new tariffs to imports.strategies for deficit steering
BESENTES planned measures for deficit checks include cuts in development aid and the support of Ukraine. To increase state revenues, he intends to introduce punitive tariffs in particular to imports from China and Canada. Customs that start at 2.5 percent and are supposed to rise monthly are seen as a remedy for unfair trading practices and to strengthen the United States' negotiating position. Furthermore, the finance minister plans to expand oil and gas production to dampen the prices and reduce the commercial balance deficit.
The current unemployment rate has also changed and has increased from 3.9% to 4.1%, which means that around 100,000 state employees have lost their jobs. This increases the concern about a possible economic downturn that could be triggered by the state spending cuts. In addition, it is expected that the restriction of illegal immigration will result in a lack of workers in the low -wage sector.
role of the Federal Reserve and Market Development
A central point in Besent's financing policy will be the role of the Federal Reserve, which could strive for interest rate cuts to boost economic growth. However, there is uncertainty about the interest rate policy of the FED because the inflation risks have increased. The performance of the stock markets is viewed as a yardstick for the success of Bessent and Trump and could make a decisive contribution to the public perception of its measures.
The forecasts for the future of the US budget are worrying, since in fiscal year 2024 the deficit could exceed the 6% of the GDP. The shortfall for the first two months of the new fiscal year has already achieved a new record of $ 624 billion. The congressional budget office predicts that public debts could increase to 122% by 2034. While asset managers are reserved for new guest agents in US trasuries, the leading currency status of the dollar ensures that they will continue to find customers.
Scott Bessent, who has founded his own investment fund with start -up capital of two billion dollars since 2015 and is openly homosexual, is seen as an example of the American dream. His family was present during his Senate hearing, which gives him a special human touch. With this combination of personal history and comprehensive financial expertise, Besser promises to play a formative role in the current economic policy of the United States.
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