Inside Bessent’s Treasury: Tension, Turnover and Unmet Economic Goals
Ahead of midterms that could turn on high prices and borrowing costs, the secretary dresses down officials.
Scott Bessent's tenure as Treasury Secretary has been marred by tension, turnover and unmet economic goals. In January, Bessent confronted undersecretary John Hurley in a heated meeting at the Treasury Department, allegedly using profane language and yelling loudly enough for nearby staff to hear. Bessent later suggested Hurley find a job outside the department, and Hurley eventually became the U.S. ambassador to the Organization for Economic Cooperation and Development.
Bessent's behavior has been a contributing factor in the departure of multiple key officials during a challenging period for the Treasury Secretary. Since taking office in early 2025, Bessent has reprimanded both senior advisers and junior staff for a variety of issues, including higher borrowing costs, intractable inflation, and mounting government debt. He has also been tasked with ending the Iran war through a comprehensive sanctions plan.
Despite Trump's reliance on Bessent to address these economic challenges, skepticism has grown on Wall Street and concerns loom about the economy's impact on Republican prospects in the upcoming midterms. Bessent's "3-3-3" policy aims to reduce the budget deficit to 3% of GDP by 2028, boost GDP growth by 3%, and increase oil production by an additional three million barrels per day.
However, growth has been around 2%, oil production has only increased by less than a million barrels per day, and the budget deficit now exceeds 6% of GDP. The overall U.S. debt has surpassed $40 trillion.
Higher borrowing costs, driven by a deepening selloff in U.S. government bonds, have become a significant source of concern, highlighting the perils of the situation for Republicans. The Iran war remains unresolved, with no clear end in sight despite the economic squeeze imposed by the Trump administration. Bessent has maintained an unwavering confidence, dismissing critics as "Bloomberg terminal bros" and asserting his position as "the house now."
However, his increasingly emboldened demeanor and temper flare-ups have confounded even some of his longtime allies and friends.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
