Trump’s picks for Treasury, Interior boast plans for economic boom

President-elect Donald Trump has the chance “to unleash a new economic golden age” in America, but must first extend tax breaks and rein in rampant government spending and overregulation, his Treasury Secretary nominee Scott Bessent said Thursday.

Mr. Trump’s pick to head the Interior Department, North Dakota Gov. Doug Burgum, said he’ll enact Mr. Trump’s plan to lead America to prosperity through energy production.

“President Trump’s energy dominance vision will end wars abroad and make life more affordable for every family by driving down inflation,” Mr. Burgum said. “President Trump will achieve these goals while championing clean air, clean water, and our beautiful land.”

The two nominees answered questions at separate confirmation hearings in the Senate and both are all but certain to win confirmation soon after Mr. Trump is sworn in on Jan. 20.

Mr. Bessent, a billionaire investor and hedge fund manager, opened his confirmation hearing before the Senate Finance Committee with the prospect of historic job growth and prosperity during Mr. Trump’s second term.

At the same time, he warned the federal government “has a significant spending problem” that has driven deficits to historic highs and left the nation with an affordability crisis.

“Productive investment that grows the economy must be prioritized over wasteful spending that drives inflation,” Mr. Bessent said.

Mr. Bessent, 62, landed the treasury nomination after serving as a major donor and fundraiser for Mr. Trump’s campaign. He also was an economic adviser to the campaign.

He’s aligned with Mr. Trump’s plan that threatens to impose tariffs on China, Mexico, Canada and other countries to rectify long-standing trade imbalances. At the hearing, he credited Mr. Trump as “the first president in modern times to recognize the need to change our trade policy and stand up for American workers.”

Many Democrats are likely to oppose his nomination, thanks to his stance on taxes, energy and tariffs. But he aligned with Sen. Bernard Sanders, a democratic socialist from Vermont, by assuring him he’s open to Mr. Trump’s plan to cap interest rates on credit cards at 10%.

Mr. Trump pitched the cap in September as a way to help suffering consumers who are paying interest rates as high as 35%.

“When President Trump takes office and if I’m confirmed, I will follow what President Trump wants to do,” Mr. Bessent said.

Mr. Bessent said the 2017 tax cuts enacted during Mr. Trump’s first term must be extended to avoid the U.S. lurching into an economic crisis when they expire at the end of the year.

“If Congress fails to act, Americans will face the largest tax increase in history, a crushing $4 trillion tax hike,” he said.

Democrats oppose new tariffs, arguing they will raise consumer prices and hurt the economy.

“You can call it whatever you want and try in terms of trying to gussy it up. They’re going to be paid for by our workers and small businesses,” said Oregon Sen. Ron Wyden, the top Democrat on the Finance Committee.

The history of tariffs, Mr. Bessent countered, indicates they don’t lead to sky-high prices.

“Consumer preferences may change,” he said, and countries hit with tariffs, such as China, “will continue cutting prices to maintain market share.”

Mr. Trump’s second administration is expected to put Mr. Biden’s clean energy agenda on the back burner, and both Mr. Burgum and Mr. Bessent favor putting U.S. fossil fuel production into overdrive.

Mr. Burgum, who will also head a newly created National Energy Council, said the U.S. is on the verge of an energy crisis after years of increased energy demands without expanding production of reliable energy.

“Electricity is at the brink. Our grid is at the point where it could go completely unstable. We could be just months away from having skyrocketing prices,” he warned.

Mr. Burgum pointed to rising energy prices and said Mr. Trump wants policies to “stop getting in the way” of energy production by reducing regulations and red tape.

“We’ve got to realize if you shut down U.S. energy production here, it doesn’t help the global environment,” Mr. Burgum said. “That’s a false trade-off. It doesn’t help because somebody else produces it someplace else less cleaner than we do.”