{"id":1271,"date":"2025-05-06T18:02:20","date_gmt":"2025-05-06T18:02:20","guid":{"rendered":"https:\/\/www.insuracarelife.com\/blog\/scott-bessent-urges-investors-to-bet-on-trumps-economic-plan\/"},"modified":"2025-05-06T18:02:20","modified_gmt":"2025-05-06T18:02:20","slug":"scott-bessent-urges-investors-to-bet-on-trumps-economic-plan","status":"publish","type":"post","link":"https:\/\/www.insuracarelife.com\/blog\/scott-bessent-urges-investors-to-bet-on-trumps-economic-plan\/","title":{"rendered":"Scott Bessent Urges Investors to Bet on Trump\u2019s Economic Plan"},"content":{"rendered":"<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Treasury Secretary Scott Bessent urged skittish global business leaders on Monday to ignore President Trump\u2019s economic naysayers and ramp up investment in the United States, defending an economic agenda that economists warn will slow economic growth and exacerbate inflation.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Speaking to executives, entrepreneurs and policymakers, Mr. Bessent argued that the Trump administration\u2019s economic plans go beyond trade policy and will pay off in the long run. He urged them to also focus on Mr. Trump\u2019s plans to cut taxes and regulation, which he said would spur job creation and output.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cTariffs are engineered to encourage companies like yours to invest directly in the United States,\u201d Mr. Bessent said in remarks at the Milken Institute Global Conference in Los Angeles. \u201cYou\u2019ll be glad you did \u2014 not only because we have the most productive work force in the world. But because we will soon have the most favorable tax and regulatory environment as well.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">His comments came just hours after Mr. Trump ordered up new tariffs on foreign film producers, a decision that left many in Hollywood puzzled about how such a tax would work.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The Treasury secretary has been working to ease concerns among investors that Mr. Trump\u2019s trade plans will destabilize the global economy. Last month the president levied tariffs on countries around the world and escalated a trade fight with China, which sent financial markets plunging.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Since then, Mr. Bessent has been racing to negotiate trade deals with dozens of countries. He has also signaled that the China tariffs are not sustainable, offering hope that Mr. Trump would soon begin negotiations to lower them.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cOur goal with trade policy is to level the playing field for our great American workers and companies,\u201d Mr. Bessent said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Business leaders continue to be on edge about the Trump administration\u2019s haphazard approach to setting trade policy.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Trump on Sunday night posted on Truth Social that he was directing his government agencies \u201cto immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in Foreign Lands.\u201d However, on Monday a White House spokesman said that \u201cno final decisions on foreign film tariffs have been made\u201d and that the administration was still considering its options.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Despite Mr. Bessent\u2019s calls for investors to take a longer-term view on the U.S. economy, executives at the Milken Institute gathering made clear that the tariffs were taking a real toll.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWhat we\u2019re hearing from clients is that they\u2019re prepping for headwinds,\u201d said Jan Fraser, the chief executive of Citigroup, who noted that some businesses were pulling spending forward, some were delaying investment and all were being more cautious while they waited to see how the Trump administration proceeded with its tariff plans.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Harvey Schwartz, the chief executive of the Carlyle Group, said that a trade war between the United States and China was problematic for the world economy and that the tariffs have sapped some of the enthusiasm about Mr. Trump\u2019s economic agenda that was prevalent when he took office in January.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cI think we came into the year and there was this extraordinarily high expectation and momentum and everything was sort of pro-growth,\u201d Mr. Schwartz said in a panel discussion following Mr. Bessent\u2019s remarks. \u201cAnd I think with the tariff policy, people were just left a bit confused and uncertain, because it felt like such a shift dramatically in policy.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">He added: \u201cThis is a policy initiative that we\u2019ve never seen.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Bessent has attempted to shift the policy discussion to tax cuts, which he has predicted Congress could pass by early July.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The Trump administration is working closely with congressional Republicans on tax legislation that would extend the 2017 tax cuts and offer new tax breaks for overtime pay, tips and Social Security benefits. Mr. Bessent said that the bill would include tax credits and deductions for research and innovation to stimulate investment in high-tech operations and tax incentives for purchasing equipment and building factories.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Bessent made the case on Monday that investors need to consider the broader agenda when thinking about where to park their money.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Describing Mr. Trump\u2019s policies as \u201cmutually reinforcing,\u201d Mr. Bessent said, \u201cActing in concert, they push toward the same goal \u2014 to solidify our position as the home of global capital.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Investors have grown increasingly wary of Mr. Trump\u2019s policies in recent months, with stocks, bonds and the dollar all showing signs of weakness as fund managers fret over the uncertainty surrounding Mr. Trump\u2019s policymaking approach.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The International Monetary Fund projected last month that global output would slow to 2.8 percent this year from 3.3 percent in 2024 and sharply downgraded its outlook for the U.S. economy.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-4\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cClearly we are experiencing significant turbulence in global trade,\u201d Kristalina Georgieva, the managing director of the I.M.F., said at the Milken conference on Monday. \u201cWe are now going from a predictable trade regime that we had before to what eventually is going to be a new equilibrium.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">She added: \u201cWhat the world is paying for that shift, from one equilibrium to something new, is not trivial.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Despite those concerns, Mr. Bessent on Monday said Mr. Trump would prove \u201ccritics in establishment circles\u201d wrong.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe have the world\u2019s reserve currency, the deepest and most liquid markets, and the strongest property rights,\u201d Mr. Bessent said. \u201cFor these reasons, the United States is the premier destination for international capital.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Scott Bessent urged skittish global business leaders on Monday to ignore President Trump\u2019s economic naysayers and ramp up investment in the United States, defending an economic agenda that economists warn will slow economic growth and exacerbate inflation. Speaking to executives, entrepreneurs and policymakers, Mr. Bessent argued that the Trump administration\u2019s economic plans go [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[820,951,764,950,952,862,197,949],"class_list":["post-1271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-bessent","tag-bet","tag-economic","tag-investors","tag-plan","tag-scott","tag-trumps","tag-urges"],"_links":{"self":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/1271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/comments?post=1271"}],"version-history":[{"count":0,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/1271\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media\/1272"}],"wp:attachment":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media?parent=1271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/categories?post=1271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/tags?post=1271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}