Tension and Tirades Inside the U.S. Treasury

Kate Linebaugh (0:05)

Scott Bessent, the Secretary of the Treasury, plays a key role in managing the economy. But he's doing a lot more than that.

Brian Schwartz (0:16)

He's been given a portfolio that no other modern day Treasury has ever had.

Kate Linebaugh (0:22)

That's our colleague, Brian Schwartz.

Brian Schwartz (0:24)

He is leading trade negotiations with China.

Scott Bessent (0:27)

It's unfortunate that the Chinese actually don't want to come and negotiate because they...

Brian Schwartz (0:34)

He has become the point person on handling the economic policy side of the Iran War.

Scott Bessent (0:40)

We are going to economically fixate this regime.

Brian Schwartz (0:45)

He is a member of the Artificial Intelligence Task Force. He has also, of course, tried to deal with the bond market that's been in flux.

And on top of that, the price instabilities that you're seeing across the country. So that's a massive remit for a Treasury Secretary.

Kate Linebaugh (1:03)

And what is the actual job of the Treasury Secretary?

Brian Schwartz (1:08)

Well, traditionally, the role is meant to be the tip of the spear for any administration on economic policy. That's the policy side. The political side, of course, is that he, whoever the Treasury Secretary is, usually becomes a face of the results of those economic policies heading into any election.

Kate Linebaugh (1:31)

When it comes to the economy, it's a complicated moment for the Trump administration. Many voters have indicated that they're unhappy, and the midterms are in a couple weeks.

Meanwhile, inside Scott Bessent's Treasury, tensions have been rising.

The Wall Street Journal interviewed more than 30 former and current officials in the department and in the wider administration, as well as close associates from Wall Street, for an article published earlier this month.

Brian Schwartz (1:59)

And it seems like what tracks from our reporting is that if the secretary is under pressure from the White House or the president to do something, there is a very good chance that if it's not being done in the way the White House or the president told him to, he is going to take you on and lash out at you.

Kate Linebaugh (2:18)

A Treasury spokesman said Bessent, quote, approaches the job with a deep sense of responsibility and urgency. He also said Bessent, quote, has high expectations of the United States Treasury's performance.

Why does it matter what kind of boss Bessent is inside the Treasury?

Brian Schwartz (2:39)

Because it gives a glimpse into how he's being as this key ally of the president behind the scenes.

And this is a key government official, leading government official, who's the voice and an architect of Trump's economic policies. And the way he goes about doing that is important. But the bottom line is why it's of interest, is because it gives a glimpse into an agency that is so powerful and how it's run.

Kate Linebaugh (3:09)

Welcome to The Journal, our show about money, business and power. I'm Kate Linebaugh, it's Monday, October 19th.

Coming up on the show, the tension and turnover at Scott Bessent's Treasury.

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Kate Linebaugh (4:08)

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