Trump's Treasury Secretary nominee, Scott Bessent, testified in front of the Senate Finance Committee, answering senators' questions about tariffs, sanctions against Russia, the Federal Reserve, the federal minimum wage, and more.
22V Research senior managing director Kim Wallace tells Julie Hyman and Josh Lipton on Market Domination that "pro-growth fiscal policy" will be at the forefront of Trump's Treasury secretary's priorities, but the challenge will be getting Capitol Hill to define what pro-growth policy is.
"There was a lot of bipartisan discussion about pro-growth fiscal policy," Wallace highlights, noting, "It's an easy phrase to use [but] it's really difficult to pin down definitionally, and it's much more and more difficult to pass as policy."
Wallaces adds that:
"There is some notion that spending cuts can get you there, [but] I don't think the data supports that position. We don't have a spending problem that's not caused by automatic spending. That is, the growth in spending in the US comes from mandatory spending ... You're going to have a hard time reducing the deficit significantly, much less to 3%, if you are going to exempt entitlements from that calculation.
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This post was written by Naomi Buchanan.