Trump Gives Scott Bessent More Power as Treasury Officials Quit and Economic Goals Miss Targets

Scott Bessent is facing mounting pressure at the US Treasury after seven Senate-confirmed senior officials left the department by late August, while his signature 3-3-3 economic plan remains well short of its targets for growth, the deficit, and oil production.

The turnover is unusually high compared with previous administrations and comes as current and former officials describe tensions over Bessent's management style. At the same time, rising borrowing costs, a growing national debt, and economic targets that remain out of reach are adding to the scrutiny.

The challenges come as the Trump administration approaches the November midterm elections, when high prices and borrowing costs could become politically significant.

Seven Senior Officials Have Left

Data compiled by the Partnership for Public Service showed that seven Senate-confirmed Treasury officials had left their posts by late August. That compares with between zero and two departures during comparable periods under each of the previous four administrations. One prominent departure involved John Hurley, the former Under Secretary for Terrorism and Financial Intelligence.

According to people familiar with the matter, Bessent confronted Hurley during a January meeting after Trump directed the Treasury to investigate allegations of fraud in Minnesota's Somali community. Bessent reportedly shouted and used profanity during the confrontation.

Hurley left the Treasury weeks later to become US Ambassador to the Organisation for Economic Co-operation and Development. He later described Bessent as a 'great and fearless warrior for President Trump and the American people.' The reporting indicates that Bessent's behaviour was a factor in multiple senior departures, although it does not establish that his management style was the sole reason for every departure.

Several Senate-confirmed positions also remain vacant, including general counsel, legislative affairs, tax policy, and domestic finance. The Internal Revenue Service has gone through five acting commissioners since Trump took office, while the commissioner position remains unfilled.

Bessent's Hard-Charging Leadership

The departures have intensified scrutiny of Bessent's management style. Current and former officials said Bessent can loudly berate staff when dissatisfied. Some aides reportedly check his mood before approaching him, while some prospective recruits have declined Treasury positions after hearing accounts about his temperament. His allies argue that the intensity reflects a determination to carry out Trump's agenda quickly.

Former White House chief strategist Steve Bannon acknowledged Bessent's temper but defended his results-driven approach, saying the administration is focused on its mission. Stephen Myrow, managing partner at Beacon Policy Advisors and a former Treasury official, said investors had initially expected Bessent to act as a market-friendly counterweight within the administration. He said recent actions were 'shaking confidence'.

3-3-3 Plan Remains Out of Reach

The leadership controversy comes as Bessent faces questions over his economic goals. His 3-3-3 plan called for 3% economic growth, a fiscal deficit of 3% of GDP by 2028, and an additional 3 million barrels of oil production a day.

The available figures show significant gaps between those targets and current results. Growth is hovering around 2%, while the increase in oil production since Trump took office has remained below 1 million barrels a day. The Committee for a Responsible Federal Budget has also put the fiscal deficit above 6% of GDP. The national debt has meanwhile surpassed $40 trillion.

Treasury Market Adds to Pressure

The Treasury market has created another challenge. Treasury expanded its buyback programme in an effort to address pressure in the longer-term bond market. However, long-term Treasury yields have continued to rise, with the 10-year yield reaching multi-decade highs. Recent reporting has also highlighted weak demand at some Treasury auctions and rising borrowing costs.

Bessent's supporters argue that rates could have risen further without his intervention. They also point to his efforts involving the Argentine peso and Japanese yen, as well as the potential for artificial intelligence investment to support future growth.

Trump Continues to Back Bessent

Despite the departures and missed targets, Bessent retains Trump's support. Trump speaks with Bessent almost daily and regards him as one of the senior officials capable of persuading him to change his mind. He has also backed Bessent's interventions in the Treasury market.

Bessent has remained defiant towards his Wall Street critics, saying, 'I am the house now. You can bet against me if you want.' His responsibilities have also expanded beyond the traditional Treasury remit. He is involved in Iran sanctions, trade negotiations, artificial intelligence policy, and discussions over the next Federal Reserve chair.

The combination of senior departures, vacant positions, and missed economic targets leaves Bessent facing a major test of his leadership. Trump's backing remains firm, but the gap between Bessent's ambitions and current results is likely to keep scrutiny on the Treasury secretary.