Scott Bessent, the U.S. Treasury Secretary, addressed the Economic Club of New York, focusing on President Trump's America First agenda. In his speech, Bessent highlighted three key areas: deregulation of the financial sector, international economic relations, and the inseparability of economic and national security.
Bessent emphasized that "America First is about more than just domestic or international policy," describing it as a comprehensive program aimed at improving American lives. He stated that he would not discuss tax policy in detail during his speech but would address it later with Larry Kudlow.
On domestic economic policy, Bessent spoke about deregulating the financial sector to promote what he called "the re-privatization of the economy." He criticized past regulatory overreach for stifling growth and innovation. The Trump administration aims to make financial regulation more efficient by requiring major regulatory bodies like the OCC and FDIC to submit actions for review.
He also referenced supervisory failures during the 2023 banking crisis under President Joe Biden, calling it "a supervisory failure" and advocating for a refocus on material risk-taking.
In discussing international economic relations, Bessent said that President Trump's tariff policies are part of reorienting these relations. He stated that tariffs aim to level the playing field in international trade and ensure that American interests are prioritized.
On economic security, Bessent argued that it is intertwined with national security. He criticized previous administrations' sanctions policies and noted President Trump's view that overuse could affect the US dollar's supremacy. "Sanctions will be used explicitly and aggressively for immediate maximum impact," he said.
The Treasury Secretary also mentioned Iran's precarious economic state before announcing a maximum pressure campaign designed to collapse Iranian oil exports. "Making Iran Broke Again will mark the beginning of our updated sanctions policy," he declared.
In conclusion, Bessent reiterated that all decisions and policies should serve the American people.
