Scott Bessent, U.S. Treasury Secretary, has laid out the Trump administration’s bold plan to shift the U.S. economy back to private sector dominance. The strategy aims to undo years of government expansion and reposition American businesses at the heart of economic growth.
In his first major economic policy address as U.S. Treasury Secretary, Scott Bessent laid out the Trump administration’s ambitious plan to transition the American economy away from government dependence and toward private sector-driven growth. Speaking at the Economic Club of New York, Bessent made it clear that President Donald Trump intends to roll back financial regulations, implement permanent tax cuts, and use tariffs as a strategic tool to strengthen American industry. His remarks signaled a significant shift in economic policy—one aimed at reversing what he described as the “overreach” of the previous administration.
Bessent emphasized the need to reduce government intervention in the economy, arguing that the previous administration’s policies had stifled innovation and productivity. He pointed to data indicating that over 95% of job growth in the past year had been concentrated in public and government-adjacent sectors, which he argued offer slower wage growth and lower productivity compared to private sector jobs.
“The American economy has been artificially propped up by government spending and public sector job growth,” Bessent said. “We are focused on transitioning back to a private sector-powered economy—one where businesses drive job creation, investment, and innovation.”
To facilitate this transition, the administration plans to suspend the Corporate Transparency Act, which Bessent claims has placed unnecessary reporting burdens on small businesses. He also reiterated Trump’s commitment to permanent tax cuts, reduced corporate tax rates, and expanded small business deductions to incentivize investment and entrepreneurship.
In line with Trump’s broader economic agenda, Bessent announced a “comprehensive and assertive effort” to deregulate the financial sector, enabling banks to play a more active role in driving economic growth. The administration is particularly focused on overhauling the way financial institutions are supervised, shifting from what Bessent described as “bureaucratic box-checking” to a more risk-based regulatory approach.
One of the key changes under review is the Supplementary Leverage Ratio (SLR), which requires banks to hold capital reserves regardless of risk levels. Bessent suggested that this regulation could be eased, arguing that it currently forces banks to hold capital against safe assets like U.S. Treasury bonds, restricting their ability to lend and invest.
“The goal isn’t to consolidate regulatory agencies but to ensure they work in coordination with each other and the industry,” he clarified, signaling a shift towards regulatory alignment rather than consolidation.
Bessent also defended the administration’s aggressive trade policy, emphasizing that tariffs are not just about protectionism but about creating a more competitive and resilient U.S. economy. He dismissed concerns over potential inflationary effects, arguing that tariffs serve three primary purposes: generating revenue, protecting American industries and workers from unfair practices, and serving as a powerful negotiation tool in trade discussions.
“As President Trump has said many times, ‘Tariff is my favorite word,’” Bessent noted. “If trading partners retaliate, they will face even higher duties. But if they want to negotiate, we are happy to have a discussion.”
Bessent’s comments came as the U.S. prepares to implement reciprocal tariffs starting April 2. The move has already drawn sharp responses from key trading partners, with Canadian Prime Minister Justin Trudeau calling the measures “unfair and unreasonable.” However, Bessent dismissed these criticisms, stating that Trump’s trade policies are designed to restore America’s economic leverage on the global stage.
Addressing concerns from investors, Bessent made it clear that the administration does not intend to intervene in the stock market to prevent declines—a stark contrast to expectations of a “Trump put.” Instead, he argued that strong economic policies would naturally lead to market gains over time.
“The Trump call on the upside is simple—if we have good policies, then the markets will go up,” he stated, referencing the administration’s focus on bond yields rather than stock prices as an indicator of economic health.
Bessent also suggested that Trump’s economic agenda, particularly in reprivatizing the economy, would contribute to lowering interest rates and boosting long-term market confidence.
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