Treasury Secretary Bessent speaks in Semafor interview

Treasury Secretary Bessent speaks in Semafor interview

In a recent interview with Semafor, Treasury Secretary Scott Bessent revealed his plans to defend the Trump administration's tariffs in an upcoming Supreme Court case. The federal appeals court had previously ruled that the tariffs were an overreach of the president's emergency powers, but the administration is expected to appeal this decision.

Bessent expressed confidence in the Supreme Court's eventual ruling in favor of the administration. He noted that while the trade deficits have been longstanding, there is a concern about an approaching "unsustainable equilibrium" that could lead to financial instability. He argued that the president is using his emergency powers to prevent such a crisis, comparing it to the housing market crisis in 2005 and 2006.

During the interview, Bessent also discussed the Republican Party's efforts to highlight the tax break on tips as part of their sweeping tax-and-spending law. He mentioned that the focus on this provision is to shift attention away from less popular health care provisions. Bessent also touched on the potential impact of the Affordable Care Act subsidies' lapse at the end of the year, stating that the administration is listening to the American people and will address the affordability crisis.

Regarding the Federal Reserve chair candidate interview process, Bessent mentioned that it will start with Zoom or in-person interviews and that Stephen Miran is a likely candidate. He expressed an open mind about potential candidates and emphasized the importance of trust in institutions.

Bessent also addressed the markets' subdued response to Governor Lisa Cook's attempted removal, stating that the markets understand the president's discontent with certain individuals but respect the Fed's independence.

Lastly, Bessent mentioned that he has had conversations with individual Republicans about bringing legislation banning member stock trading to the floor but has not yet spoken to leadership about it.

References:
[1] https://www.semafor.com/article/09/01/2025/scott-bessent-previews-trump-administrations-latest-tariff-defense
[2] https://www.investing.com/news/economy-news/exclusivefed-should-be-independent-has-made-mistakes-treasury-secretary-bessent-says-4218238