Overview

• Scott Bessent, U.S. Treasury Secretary, emphasized the administration's three-pillar economic plan—strategic tariffs, aggressive tax incentives, and sweeping deregulation—at the Milken Institute Global Conference in Beverly Hills.
• Bessent framed tariffs as tools to encourage domestic investment, urging companies to hire workers, build factories, and produce goods in the U.S., while describing the U.S. as the 'Schelling point' for global capital.
• He highlighted tax reforms, including permanent small business deductions, full equipment expensing, and incentives for factory construction and research, as key drivers of industrial growth.
• Bessent addressed regulatory reforms aimed at drastically reducing federal approval times for energy and infrastructure projects, predicting a surge in private-sector activity.
• While some investors expressed optimism about potential tariff reductions hinted at by the administration, concerns remain over the economic drag caused by high trade levies and uncertainty in global markets.