Breaking Down Trump's Financial Strategy: U.S. Treasury Secretary Scott Bessant Discusses U.S. Debt, Finance, and Tariffs, The Affordability Tsar is About to Be Released

U.S. Treasury Secretary Scott Bessant shared his comprehensive observations on major issues such as U.S. debt, inflation, fiscal deficit, labor market, energy, and housing prices during an interview on May 20, and specifically explained the economic reconstruction plan of the Trump administration's second term.

The Biden administration has caused the U.S. fiscal deficit to swell and purchasing power to collapse.

Bessant believes that Biden ( Joe Biden ) still flooded the market with relief funds during the economic recovery in 2021, leading to today's excessive deficits and inflation problems.

"Those who hold assets profit from the gains brought by inflation, while the lower and middle classes are suffocated by housing prices, rents, insurance, and food costs," he emphasized.

Bessant also pointed out that the CPI has risen by about 22% in recent years, but the increase in the "real prices" for the lower-income population may exceed 35%, and the entire system has become unbalanced.

Three major reform pillars: reducing expenditures, deregulation, and allowing the private sector to restart investment.

Bessant explains the Trump administration's economic strategy for a second term:

Reduce government spending and gradually deleverage: It is estimated that by 2028, the proportion of the fiscal deficit to GDP will be reduced to around 3% (, currently about 6.5% ), through measures such as controlling revenue and expenditure and cutting government redundancies.

Loosen bank and corporate regulations to allow private capital to flow again: If the supplementary leverage ratio (SLR) rules for banks purchasing government bonds are adjusted, resulting in a reduction of US Treasury yields by 30-70 basis points, it would significantly help with debt interest expenses.

Rebuilding manufacturing and worker wages through tariffs and supply chain restructuring.

The U.S. sovereign wealth fund uses assets to support its citizens, not just relying on debt.

Bessant mentioned that Trump wants to establish an American version of a sovereign wealth fund. A working group is currently being formed to study models such as the Alaska Permanent Fund or those of Singapore and Australia.

and through land asset development, energy income, and even state-owned mortgage agencies ( Fannie Mae, Freddie Mac ) stock releases, making this fund a long-term asset source shared by all.

Reforms in housing prices, building materials, and insurance make affordability more than just a slogan.

In discussing how to make it affordable for the American people again, Bessant emphasized:

Change the construction rules and processes: promote "modular buildings" and national standards.

Review the housing insurance system: Let the federal government act as the last layer of reinsurance to reduce premiums, and require improvements in building safety and fire protection.

When it comes to Trump's decision-making style, it is not like the so-called "shooting birds"

When discussing Trump's decision-making style, Bessant emphasized that Trump is very astute, primarily uses systematic thinking, demands details, and actively concerns himself with questions like, "Will this cause unemployment? Is there a way to solve this?" She further described Trump as the mayor of the United States, treating every citizen as someone he needs to take direct care of.

National governance also requires financial statement thinking.

Throughout the entire interview, Bessant repeatedly emphasized that the United States does not lack income, but rather has a problem with its expenditure structure. He hopes to transform the federal government into an effectively operating company through corporate thinking and efficiency in cost-cutting.

In the future, he will also announce a candidate for the Affordability Czar (, who will be responsible for coordinating issues related to supply chain efficiency and the cost of living, aiming to make a tangible impact on the American people in the short term.

) Trump hires former Morgan Stanley executive Grimes to lead the sovereign wealth fund to counter China's economic influence (

This article analyzes Trump's financial policy: U.S. Treasury Secretary Scott Bessant discusses U.S. debt, finances, and tariffs, with the affordability czar set to be revealed soon. First appeared on Chain News ABMedia.