Why This Cabinet Pick Is Important to Your Wallet

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The nomination for Treasury Secretary is one of the highest-profile cabinet picks for any incoming president, especially if they’ve run on promises to improve the economy. So, it’s worth examining what a Treasury Secretary actually does now that President-elect Donald Trump has chosen hedge fund manager Scott Bessent.

For starters, the secretary is the president’s lead economic adviser, so they are not only one of the chief salespeople for a president’s economic agenda, but they can have a lot of influence over it. (Many credited Steven Mnuchin, the secretary during Trump’s first term, as instrumental in getting the first massive COVID-19 relief legislation through.)

Bessent, who must still have his role confirmed by the Senate, is already being celebrated on Wall Street and by business leaders because he favors reining in deficit spending and softening Trump’s approach to tariffs, according to press reports. To encourage more manufacturing in the U.S., Trump has said companies importing goods from China and other countries will face steep tariffs, but many fear that will drive up the prices consumers have to pay for those goods. 

The Treasury Department manages all federal finances, collects tax revenue (the IRS is part of the Treasury,) regulates banks, and oversees the actual printing of dollars. Another key role is selling and managing public debt such as Treasury bills and bonds so that the government can pay its bills. That means it’s the secretary’s problem whenever the U.S. hits the so-called debt ceiling, the self-imposed cap on the amount of money the country can legally borrow. After fierce debate, Congress last suspended the ceiling in June of 2023 and will need to raise or suspend it again in January to avoid a default. 

So what? The Treasury Secretary has a potentially enormous influence on a wide range of financial fronts — from the prices you pay for appliances, toys, and clothes to your investments to how the government spends the money it collects from income taxes. With President Trump promising a break from government business as usual, Bessent will have all eyes on him.

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