Scott Bessent, a key economic adviser to Donald Trump, reassured that Trump wouldn’t weaken the U.S. dollar or make extreme trade policy changes if re-elected.
What Happened: Bessent, a hedge fund manager who contributed over $2 million to Trump’s 2024 campaign, is seen as a possible Treasury secretary if Trump wins. He joined Trump’s economic advisory team despite not being part of his earlier administration, as reported by the Financial Times.
Although Trump and his running mate, JD Vance, hinted at supporting a weaker dollar for more exports, Bessent confirmed that under Trump’s leadership, there would be support for a strong dollar.
Bessent stated, “If you have good economic policies, you’re naturally going to have a strong dollar.” He also said Trump’s tariffs would likely be moderated in negotiations, asserting, “At the end of the day, he’s a free trader.”
Why It Matters: Trump’s economic strategies have stirred heated discussions. His suggestion of 100% tariffs to strengthen dollar dominance raised worries about economic chaos, with Commerzbank AG strategist Ulrich Leuchtmann warning of potential global disruption.
Additionally, Trump’s plan to cut the federal corporate tax rate from 21% to 15% has sparked debate on its economic impact, with estimates from the Tax Foundation predicting a potential 0.4% GDP increase and the creation of about 93,000 jobs.
Trump’s former trade advisor, Robert Lighthizer, recently warned investors to brace for quick implementation of Trump’s tariff plans if he wins a second term.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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