Regulation, deficit reduction, inflation reduction! Trump's Treasury Secretary "popular candidate" shoots "three arrows"

Donald Trump's Treasury Secretary "candidate" Bessent has proposed his "three-arrow" theory.

Hedge fund manager Scott Bessent is considered a potential candidate for Treasury Secretary in the second Trump administration. He is an admirer of the late Japanese Prime Minister Shinzo Abe, who was known for his "three-arrow economic revitalization" plan.

On Thursday, he presented a three-point economic agenda at a conference at the Manhattan Institute, suggesting Trump adopt a "3-3-3" plan for the 2024 election: 3% real economic growth, reducing the deficit to 3% of GDP, and increasing U.S. oil production by 3 million barrels per day.

First, Bessent proposed achieving 3% real economic growth by relaxing regulations, increasing U.S. energy production, curbing inflation, and providing forward guidance on investment to allow the private sector to replace government spending. He implied that the Biden administration's policies hindered investment.

Second, he recommended reducing the deficit as a percentage of GDP to 3%. Bessent noted that during Trump's tenure, the deficit as a percentage of GDP averaged 4%, much lower than the 6% or 7% during the Biden administration.

Third, he advocated for increasing U.S. oil production by 3 million barrels per day to significantly lower oil prices and address inflation. He believes this will create an appropriate monetary easing environment for the Federal Reserve.

Bessent also expressed support for Trump's tax cuts and spending policies during his tenure, believing these measures raised worker wages and capital investment. He published a commentary titled "The Fallacy of Bidenomics: A Return to Central Planning" on the Manhattan Institute's website and described Biden's policies as "Bidenitis" on Fox Business Channel.

Bessent also pointed out that a new group of venture capitalists supporting Trump is emerging in Silicon Valley.

Bessent has donated significant funds to the Trump committee and other Republican groups during this election cycle, serving as co-chair at a fundraising event in April. Additionally, he has expressed support for Trump's policies on multiple occasions, believing that both Wall Street groups and emerging venture capital groups will continue to support Trump.

However, Bessent is not the only "candidate" for Trump's Treasury Secretary. Another candidate from Wall Street, the "Big Short" John Paulson, is also considered a top contender for Treasury Secretary. Source