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Scott Bessent on Tariffs, the Fed, and the economy
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New York, NY – December 6, 2025 – Scott Bessent, founder and chief investment officer of Bessent Capital, delivered a stark assessment of the U.S. economic landscape at the DealBook summit on Wednesday. Speaking wiht Andrew Ross Sorkin,Bessent focused heavily on the detrimental effects of current tariff policies and the Federal Reserve’s monetary policy,arguing they are creating notable distortions in the market. His comments come amid ongoing debate about the direction of the U.S. economy and the appropriate response from policymakers.
Tariffs and Their Impact
Bessent was notably critical of the continued use of tariffs, stating they are a tax on American consumers and businesses
. He argued that tariffs are not achieving their intended goal of re-shoring manufacturing and are instead leading to higher prices and reduced competitiveness. He believes the current tariff structure is actively harming the U.S.economy, creating inefficiencies and hindering growth.
Did You Know?
Bessent Capital is a global macro investment firm founded in 2015, managing billions in assets.
Federal Reserve Policy
Turning to the Federal Reserve, Bessent expressed concern about the central bank’s approach to monetary policy. He suggested the Fed is keeping interest rates too high for too long, which is stifling investment and increasing the risk of a recession. He posited that the Fed’s focus on inflation is overlooking the broader economic consequences of its actions. The Fed is making a mistake by prioritizing inflation over growth
,he stated.
Economic Outlook and Concerns
Bessent painted a cautious picture of the U.S. economic outlook. He warned of potential vulnerabilities in the financial system and expressed concern about the growing level of debt.He believes the combination of high tariffs, restrictive monetary policy, and rising debt levels creates a dangerous cocktail that could trigger a significant economic downturn.
| Event | Date | Key Point |
|---|---|---|
| DealBook Summit Appearance | December 6,2025 | Bessent critiques tariffs & Fed policy |
| Bessent Capital Founded | 2015 | Global macro investment firm launch |
| Current Economic Concern | 2025 | Rising debt & potential recession |
Pro Tip: Understanding global macro investing can provide valuable insights into broader economic trends.
Further Context & Bessent’s Background
Scott Bessent previously served as a global portfolio manager at Soros Fund Management. His expertise lies in identifying macroeconomic trends and capitalizing on market dislocations.His views are closely watched by investors and policymakers alike. Bessent’s firm, Bessent Capital, focuses on global macro strategies, seeking to profit from shifts in economic policy and market sentiment.
“The current economic policies are creating a fragile surroundings ripe for disruption.”
Bessent’s comments at the DealBook Summit underscore the growing debate about the best path forward for the U.S. economy. While some argue that tariffs and tight monetary policy are necessary to combat inflation and protect American interests, others, like Bessent, believe they are doing more harm than good.
The U.S. Treasury Secretary also spoke at the DealBook Summit on Wednesday, according to Sarah Kessler’s reporting. [Source: Kessler, Sarah. “The U.S. treasury secretary spoke with Andrew Ross Sorkin at the DealBook Summit on Wednesday.” 2025-12-06 13:00:00]
What are your thoughts on Bessent’s assessment of the U.S. economy? Do you agree with his criticism of tariffs and the Federal Reserve’s policies?
How might these economic factors
