Treasury Nominations: Brooke, Browne, Kothari, McMaster for Dep, Under, Asst Sec

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The committee will come to order. Thank you to our nominees, Mister Brook, Miss Brown, Doctor Kothari and Mister McMaster for being here today. And congratulation on your nominations and thank you for your willingness to serve. This is an important and timely hearing for the finance committee. Less than two weeks ago we marked the first anniversary of the working families' tax cuts. Over the past year, the Treasury Department has worked expeditiously to implement the law's signature policies and to provide historic tax relief for working class Americans. While each of you have been nominated for distinct roles, if confirmed, you will all oversee important work at the Treasury to implement these and other policies with the shared goal to promote domestic investment and boost economic growth. We will first hear from Francis Brook, who is nominated to be Deputy Secretary of the Treasury. The Deputy Secretary of the Treasury assists in development of policies in all aspects of the Treasury Department's activities. Mister Brook has an extensive record of public service, most recently as the Assistant Secretary for Treasury for International Trade and Development. As well as Policy Director to House Majority Leader Steve Scalise, and as a senior White House official during the first Trump administration. I'm confident this extensive background in government service has prepared him to support Secretary Besant in the execution of important treasury priorities, including the ongoing implementation of the working families' tax cuts. If confirmed, I look forward to working with him on promoting economic growth and delivering on the historic tax relief for all Americans. Next, we will hear from Erin Brown, who is nominated to serve Under-Secretary of Treas- as Under-Secretary of Treasury for International Affairs. If confirmed, Ms. Brown will manage a significant portfolio of international economic matters, including issues relating to global, mac- macroeconomic and financial development, international financial regulation, and international trade and investment. In addition, she will oversee US participation in international financial institutions and working groups. Given her background, she is well qualified to manage these issues. Most recently, Ms. Brown was Managing Director and Portfolio Manager at PIMCO, a global asset management firm. She's also held senior positions at UBS and Citigroup, among other firms. I've confirmed I look forward to working with her as we ensure American leadership in global markets. We will then hear from S P Kothari, who is nominated to be Assistant Secretary of the Treasury for Economic Policy. The Assistant Secretary for Economic Policy is the Department of Treasury's principal Economist and advises on the economic effects of tax and budget policy. Doctor Kothari's robust experience in academia, government and industry has well prepared him to provide this critical advice. Prior to his current government service, Doctor Kothari was the Gordon Y. Billard Professor of Accounting and Finance at MIT's Sloan School of Management, where he also served as Deputy Dean and Head of the Department of Economics, Finance and Accounting. From twenty nineteen to twenty twenty one, Doctor Kothari served as Chief Economist and Director of the Division of Economic and Risk Analysis at the US Securities and Exchange Commission. Prior to his tenure at SEC, he also served held several roles in the private sector. If confirmed, I'm confident his expertise will serve him well at Treasury. Finally, we will hear from Hunter McMaster, who is nominated to serve as Assistant Secretary of the Treasury of Financial Markets. The Assistant Secretary oversees a complex portfolio related to financial markets, including federal debt, government credit and lending policies. Mister McMaster joins the government from the private sector, where he was previously head of trading at Key Square Group. He's also held positions at Morgan Stanley and Goldman Sachs, where he focused on foreign exchange and interest rate markets. Since last year, he's also served as counselor to the secretary, as well as director of policy and planning. I look forward to working with him, get confirmed on policies to preserve the integrity and stability of the US financial system. I want to thank all of you nominees again for your time, and with that I recogni recognize Ranking Member Wyden for his opening remarks.

Thank you very much, uh, Mister Chairman. Today the committee considers a array of Trump nominees. Unfortunately, in my view, they simply aren't qualified. All four of today's nominees have been chosen to serve at the Treasury Department. That's the epicenter of the Trump administration corruption and self-dealing operation. Scott Dessen at the helm. The first person I believe that I'm gonna have questions for is S P Kuthari, an Assistant Secretary of the Treasury for Economic Policy. Earlier this year, he met with my staff on the committee and they talked in some detail about what steps the Treasury Department took to assess the potential economic fallout of the trump illegal war in iran this nominee told my staff stunningly that he was unaware of any analysis none whatsoever by the treasury department without any background uh on uh limiting the economic impact of a war the american people didn't want so we had a nominee we understood that he uh should have known uh about whether or not there'd been some preparation he told the committee none no information about how you might limit the economic impact of the war this became painfully clear when gas prices soared across the country to five even six dollars a gallon prices remain high to this day and families are trying to make tough choices about whether they wanna buy groceries or gas for the week. Any person nominated to serve in this role ought to have some idea of a plan to deal with the economic, you know, challenge, and particularly in my view, to rein in the Trump economic uh agenda of an- economic anarchy. But this nominee, o- over his own admission and uh at the treasury department, failed to do the bare minimum to protect the American people and i have no reason this morning to believe that he would serve the country differently if confirmed next up is francis brooke nominated to serve as the deputy secretary of the treasury second highest ranking position now this individual is a long uh documented trump loyalist he's already held numerous influential positions within the administration but as far as i can tell is unscathed by practical experience he's been in the treasury building for more than a year serving as an acting deputy secretary since april he was the number two person at treasury when donald trump was granted his settlement for the now well-known one point seven billion dollar slush fund and immunity from tax audits i find it hard to believe that mister brook had no knowledge of how the stunning display of corrupt self-dealing came to be if confirmed my own view is he would be a rubber stamp also for whatever corrupt schemes are being plotted at treasury. Next up, Aaron Brown to serve as Under Secretary of the Treasury for International Affairs, we'll hear from. This person uh has a big job ahead of them, basically serving as the treasury department's top financial diplomat, coordinating with international partners on key matters of trade and financial issues. Last year the president made it his mission to embarrass the country on the national stage, by slopping by slapping tariffs on most of the world. There was no discernible goal of a plan to help workers and families. The person in this position has to have the experience necessary to help rebuild our economic and trading partnerships, and to do it from the ground up. I'm nothing short of skeptical that these qualifications are there as we assess, uh, Ms. Brown. Finally, Hunter McMaster is an Assistant Secretary for Financial. uh markets uh for consideration in this position. He is a best loyalist who previously worked as head of trading at the hedge fund, key square. Between the war in Iran and Trump's tariff chaos, the first year and a half of the Trump presidency has in my view plagued our global markets with uncertainty. So I'm gonna be listening today carefully to determine if Mister McMaster will show. Mister McMaster at the end of the table, I'm glad we have you there. uh we've got questions as well to assess your independence and judgment which is an important uh certainty that's required to help these markets uh be confident about uh the trump uh economic stance i'll close with this donald trump is not picking his nominees based on qualifications or being well served to address the american people he's picking them based on their willingness to enable and carry out essentially stonewalling at the expense of the american people My own view is, with respect to evaluating these nominees going into this hearing, nothing shows me that they will be anything more independent than uh the predecessors who uh who addressed these issues earlier and I look forward uh to getting a chance to get into the questions Miss Chairman.

Thank you. And in a moment we will proceed to our nominees' opening statements, but before doing so, we are honored today to have the Majority Leader Steve Scalise here. to introduce Mister Brook. And I will, after that, provide a short introduction for our other nominees. And uh, Majority Leader, uh, thank you for honoring us and bringing some of the strength and wisdom of the House over here to us here in the Senate. We welcome you here. I have enjoyed uh working with you over the years, and I know you've got a really busy schedule in the House that uh you had to break out of. To get over here, we appreciate you taking that opportunity to do so. You may now introduce Mister Brook.

Oh, well thank you, Chairman Crapo. Uh, as well, uh, Rankin member Wyden to all the members of the Senate Finance Committee. It's great to be over here in the Senate. We have some votes on the House floor, but it means a lot to be here for this moment. Uh, it's especially great to be here today to introduce my friend, Francis Brooke, who's been nominated by President Trump to be Deputy Secretary of the Treasury. I'm proud that a former member of my team has been given this honor And I know Francis's wife, Caitlin, and his three children, Trip, Liddy, and Bobby are equally proud of him. I'd like to share a few personal points about my friend Francis. I first met Francis not when he came to work on my team, but actually when he was volunteering on the congressional baseball team, alongside many of my colleagues and other staff. We all shared a lot of fun times on the baseball field, and little did I know at the time that he would end being one of my most senior and trusted staffers. Before working on my staff, Francis was no stranger to Capitol Hill, having worked on both House and Senate staff. He then served in the first Trump administration in various roles, eventually serving as the deputy director of the National Economic Council, under Larry Kudlow. After that, Francis joined my staff in twenty twenty one, when I was the Republican whip. And he stayed with me when I became the House Majority Leader. As my Policy Director, he managed my policy team and was instrumental in every legislative accomplishment the House had during that time. In early twenty twenty five, he left Team Scalise to head back into the Trump administration, to serve as Assistant Secretary of the Treasury for International Trade and Development. While it was a loss for me and the rest of the Republican leadership, We were proud to see a move into this role at Treasury to help move our agenda forward, alongside the rest of the great team that President Trump assembled. President Trump is delivering on his promises to cut taxes and regulations, to make life more affordable for hardworking families, and make it easier for small businesses to grow in increased wages for American workers. Secretary Besson and his team at Treasury have been at the tip of the spear when it comes to executing President Trump's economic agenda. So, I was excited to see President Trump nominate Francis Brooke to be Deputy Secretary. I'm confident that with Francis as Secretary, best since Deputy, Treasury will continue the great work implementing our agenda, including the working families tax cuts, uh, Mister Chairman, that you alluded to earlier, a bill that was a top priority for all of us. uh, in fact most of the members of this committee supported that important piece of legislation that is delivering for American workers. Because he was a trusted advisor of mine, I'm familiar with Francis's work ethic and his professionalism. I can think of no better person to serve as Deputy Secretary, and I know that his experience in the House, Senate, and White House, uh, over at Treasury will yield a close working relationship with all the members of this committee, as well as the entire Senate. I'm confident that President Trump made the right choice in nominating Francis Brooke to be Deputy Secretary, and I appreciate Secretary Besson's leadership and the trust that he's placed in Francis. I urge the committee and the Senate to support Francis's nomination. Thank you again, Chairman Crapo, uh, Ranking Member Wyden, and for all of the members of the committee. Appreciate the important work that you're doing here today, and I yield back.

Thank you, leaders for that introduction. Uh, Mister Brook, you are truly honored to have the Majority Leader come here to give you that introduction. We know that the house is eagerly awaiting for you to get back to the floor right now. So, uh, Mister Leader, you're excused. And, uh, we ap- again, appreciate you being here with us this morning. I will now make a brief introduction of the other three nominees, uh, beyond what I've already said in my opening statement. And then we will have the opening statements. uh of our nominees. Our second nominee is Erin Brown. Ms. Brown is currently serving as Counselor to the Secretary after a distinguished career in Asset Management. Before joining Treasury, she also held senior leadership positions, as I've indicated, at PIMCO and UBS Asset Management, following earlier roles at several leading investment firms. Her expertise in macroeconomics, markets and global investment strategy has earned widespread recognition. including being named among Barron's one hundred most influential women in the United States finance. She earned her bachelor's degree in economics from Georgetown University. Our next nominee is Doctor S P Kothari. Doctor Kothari currently serves as senior advisor at the treasury department and brings experience across government, and academia, and industry. He previously served as chief economist and director of the Division of Economic and Risk Analysis at the Securities and Exchange Commission, as I've indicated, and spent many years at MIT's Sloan School of Management, where he later served as Deputy Dean. His career reflects deep expertise in economic analysis, financial regulation, securities markets, and corporate governance. Our final nominee is Hunter McMaster. Mister McMaster currently serves as Counselor to Secretary Besson and previously perform the duties of Assistant Secretary of Financial Markets. Before joining Treasury, he held senior roles in private sector, including at Key Square Group, Morgan Stanley, and Goldman Sachs, where he focused on foreign exchange and interest rate markets. He is a graduate of Washington and Lee University and a native of Columbia, South Carolina. Uh, to all of you, I consider you to be highly qualified. But before we proceed to your opening statements, i have four obligatory questions that we ask all nominees before this committee we will begin as i ask these questions uh and just go down the line you you can simply answer i hope your answers are yes uh but first of all let me say i'm actually hope your answers are no on some of these um but we'll just go right down the line first is there anything that you're aware of in your

No, sir.

No, sir.

No, sir.

No, sir.

Thank you. Secondly, do you know of any reason, personal or otherwise, that would in any way prevent you from fully and honorably discharging the responsibilities of the office to which you've been nominated?

No, sir.

No, sir.

No, sir.

No, sir.

And third, do you agree, without reservation, to to any reasonable summons to appear and testify before any duly constituted committee of Congress, if you are confirmed.

Yes, sir.

Yes, sir.

Yes, sir.

Yes, sir.

And then finally, do you commit to providing a prompt response in writing to any questions addressed to you by any senator of this committee?

Yes, sir.

Yes, sir.

Yes, sir.

Yes, sir.

Thank you very much to each of you, and we will now begin. Uh, Mister Brook, you bro- you may begin, and we will then proceed down the line. with your opening statements.

Thank you. Chairman Crapo, Ranking Member Wyden, and members of this committee, I'm honored to be here with you as the nominee for Deputy Secretary of the Department of the Treasury. I would like to thank President Trump for nominating me, and I would like to thank Secretary Besant for his confidence in me. I also wanna thank the members of this committee and staff for meeting with me, and sharing your views on the important issues facing our country. I would also like to thank Leader Scolis for his mentorship, friendship, and for introducing me today. Finally, I would like to thank my wife, Caitlin, who is here with me, as well as our three children and extended families for all of their love and support. I have dedicated my career to serving the American people. I have had the great fortune of working in both the House of Representatives and the Senate, as well as the White House. For the past year, I have served at the Department of the Treasury, working on a range of international financial and economic issues. It has been a great privilege to work implement President Trump's international economic agenda and advance America's economic interests. If confirmed as Deputy Secretary, I look forward to continuing this work across the Department of the Treasury's broad array of responsibilities both domestically and abroad. Strong financial markets and sound economic policies are essential to our country's future and the well-being of the American people. I want to highlight three priority areas for the Treasury Department, if confirmed. The first priority is economic growth. For the US economy to continue to prosper, economic policy needs to create a stronger investment environment that drives productivity and innovation. These policies include reducing government spending, eliminating red tape, advancing tax policy that rewards work and risk-taking, and incentivizing savings with policies like Trump accounts. Together these policies will create the conditions for investment in our country that increases productivity and grows the economy delivering a better quality of life for all Americans. Thanks to the working families' tax cuts, ninety-seven percent of taxpayers received a tax cut this year, with those benefits being concentrated among low- and middle-income Americans. Additionally, the legislation strengthens investment incentives and US competitiveness. Thanks to this legislation, along with deregulation across the economy, real wages are again rising, and the United States is experiencing an investment boom. Second, we must continue reforming the international economic system, so that it benefits the American people as well as our allies. In my current role, under the secretary's leadership, I am proud of the work we are doing to enhance the United States's competitiveness in international markets and to return international financial institutions to their core mission of supporting global financial stability, economic growth, and poverty reduction. We have also focused on leading internationally on setting open, secure, market-based standards that reward innovation, protect intellectual property, and ensure that competition is not distorted by discrimination. Digital assets, stable coins, tokenization, and new payment systems will help to shape the future of money. The United States should not consign itself to the sidelines, while that future is built elsewhere. We should support innovation that cements the dollar's status as the reserve currency, improves efficiency, expands access, and preserves the integrity of the financial system. And we should insist that new technologies meet our standards for transparency, security, and consumer protection. Finally, economic security is national security. We have rediscovered the wisdom of Alexander Hamilton, that every nation ought to endeavor to possess within itself all the essentials of national supply. In addition to domestic policies, success in this regard also requires working with and pushing allies. Partnership with the United States is not a one-way option. It carries reciprocal obligations which have not always been upheld. on issues ranging from market access and fair treatment of American companies, to alignment on supply chain resilience, technology security, and the rules governing strategic sectors, we have made meaningful progress. The United States remains the best economic partner in the world. To partner with the United States is to gain privileged access to the world's most important economic ecosystem. The world's deepest and most liquid capital markets, the world's most generous export market, the reserve currency that anchors international commerce and finance, in an open, competitive system whose people, institutions, capital formation, and culture of enterprise have repeatedly pushed the frontier of innovation and productivity. These advantages are not incidental. They are the product of rules, trust, scale, and shared commitments built over the past two hundred and fifty years. I am confident that the work the Treasury and the rest of the administration is currently engaged in is setting the stage for another two hundred and fifty years of prosperity. Thank you for your time today, and I look forward to answering your questions.

Thank you very much. Miss Brown.

Chairman Crapo, Ranking Member Wyden, and distinguished members of this committee. I am deeply grateful to President Trump for his confidence in me and his leadership in restoring an America first economic agenda that puts American workers, American industry, and American strength at the center of international economic policy. I am also grateful to Secretary Besant, for his trust and his leadership. Before I begin, I would like to introduce my family. Seated behind me are my parents, my husband Chris, and our five year old son Declan, who is especially excited to come to the Senate today. Our younger son Paxton is only three years old, and while he's with us in spirit, we thought it was best to spare the committee from an endless stream of why questions. For Chris and me, today is particularly meaningful. we actually met at stud- as students at Georgetown University, just a couple of miles from here. After navigating the global markets in New York and Newport Beach, the opportunity to return to Washington in service to our country is deeply humbling. I come before you after more than two decades in global financial markets, most recently as serving as Managing Director and Head of Asset Allocation at PIMCO, where my work focused on assessing geopolitical and macroeconomic risk, navigating periods of financial stress, and helping safeguard the retirement savings of millions of Americans, during times of extraordinary uncertainty. Those experience reinforced a lesson that is central to this role. Economic policy is national security. And they're increasingly inseparable. For too long, however, the United States tolerated an international economic system that rewarded unfair trade practices, weakened American manufacturing, hollowed out critical supply chains, and advantaged strategic competitors at the expense of American workers. President Trump has changed that trajectory. Under his leadership, the United States is no longer accepting an economic decline as inevitable. We are rebuilding American industrial capacity, reasserting economic sovereignty, using our economic leverage to advance the interests of the American people. If confirmed, I will advance that mission with a c- focus on three core priorities. First, I will work to ensure fairness and reciprocity in the global trading system. The United States must no longer allow non-market economies to exploit open markets while shielding their own industries through subsidies, currency practices, forced technology transfer, and state-directed economic policies. If confirmed, I will focus on strengthening American supply chains and promoting American's economic statecraft. That puts the Americans and American workers and manufacturers first. Second, I believe maintaining the predominance of the US dollar is central to American economic and geopolitical leadership. The dollar remains the world's reserve currency because investors trust the stability of American institutions, the rule of law, and the depth of our capital markets. Preserving dollar predominance is not simply an economic priority, it is a strategic national advantage that strengthens American influences, reinforces our sanctions regime, lowers borrowing costs, and underpins global confidence in the United States. To sustain that leadership in the digital age, the United States must lead responsibly in financial innovation while ensuring accountability, and national security protections. I support the efforts to ensure that the future of digital finance is anchored firmly in the United States and governed by American rules and values. Third, economic security is national security. Treasury plays a critical role in protecting the United States from illicit finance, safeguarding sensitive technologies and capital flows, and ensuring that American capital does not strengthen the military and strategic capabilities of our adversaries. If confirmed, I will work aggressively to strengthen our economic defenses and preserve America's financial and technological advantages. I also believe that the United States must lead international economic institutions with clarity and purpose. Institutions such as the IMF and the World Bank should serve the cause of stability, transparency, and market reform. Not subsidize unsustainable lending practices or increase dependence on strategic competitors. The American people deserve an international economic policy that prioritizes their prosperity, their security, and their future. That is what America's first agenda is all about. Thank you again for the opportunity to appear before you. I am grateful for your consideration, and I look forward to your questions.

Thank you very much. Mister Kultari.

Chairman Crapo, Ranking Member Wyden, and members of the committee. It is an honor to appear before you today as you consider my nomination to serve as an Assistant Secretary of the Treasury. I would like to thank President Trump for this opportunity to serve our country, and Secretary Besant for his confidence in me. I'm also grateful to the members and staff of this committee who have taken the time to meet with me. I have appreciated these opportunities to discuss your priorities, and if confirmed, I look forward to working together. I would also like to thank my family, first my wife Daphne, who is here today. Daphne and I met in Rochester, New York, thirty-eight years ago, and have been happily married for the past thirty-six years. I'm deeply grateful to Daphne for her support and love. Next, I'm blessed with two beautiful accomplished daughters. Kavita and Monica, and the and two precocious grand kids, Aidan and Esgi. My two sons-in-law, Sarhan and Blake, both amazing, round out my immediate family. Finally, my parents, Prakash Chandra and Sarojini Kothari, both deceased, words cannot adequately express my gratitude for the countless sacrifices they made while raising me. I'm fortunate to have had a long career in academia at MIT and the University of Rochester, in university administration as deputy dean for faculty at MIT's Sloan School of Management, and in the private sector as global head of equity research at Barclays Bank. I also had the privilege to serve as the chief economist at the Securities and Exchange Commission in the president's first term. Economic incentives, evidence, and fairness inform my work. At the SEC, I crafted securities regulations that enhance trans- transparency and protect investors without unduly burdening corporations with compliance costs. If confirmed, I would be honored to re- return to government service and contribute to the President and the Treasury Secretary's of efforts to meet the new challenges and opportunities we face today. Treasury's responsibilities are vitally important. Americans' liberty and prosperity depend on Treasury's ability to protect the integrity of our financial system and our tax code, and to advance policies that foster economic growth. The office of economic policy is essential in executing these responsibilities. First, The office reviews, analyzes, and reports on current and prospective economic developments and domestic and international economies and financial markets. It also assists the Treasury Secretary in determining appropriate economic policies. Second, the office participates along with the Council of Economic Advisors and the Office of Management and Budget in the preparation of the administration's budget. Third, the office supports the Treasury Secretary in the roles as Chairman and Managing Trustee of the Social Security and Medicare Board of Trustees. Finally, the office conducts research to assist in the formulation and ab- articulation of micro- and macroeconomic public policies and positions of the Treasury Department. I believe in having a close working relationship with Congress. The Office of Economic Policy provides Congress information about the health of the economy, employment, interest rates, and tax revenues. If confirmed, I hope to be informed by my experience in industry, academia, and past work at the SEC when working with Congress. Finally, if confirmed, I pledge that I will honor the Office of the Economic Policy's proud track record of consistently providing unbiased economic information and sound advice toward furthering the goals of the treasury department, the treasury secretary and the president. Leading Treasury's Office of Economic Policy, which houses some of the world's most talented economies, is a special privilege. I would be honored to call them my colleagues, and I promise to work faithfully and vigorously to serve the department and to enhance it for the future occupants of the office. Thank you again for your time today, and I look forward to your questions.

Thank you very much, Mister McMaster.

Jim Acrepo, ranking member Wyden, and distinguished members of the committee. It is the highest honor of my life to appear before you today as nominee of Assistant Secretary for Financial Market. at the United States Department of the Treasury. I would like to thank President Trump for the opportunity to serve our country, and Secretary Besson for his confidence in me, both in this nomination and over the past several years. I'm also grateful to the members and staff of this committee, who have taken the time to meet with me. I've greatly valued our discussions, and if confirmed, I look forward to working together. I first would like to recognize my parents, Jeff and Will McMaster, I have been deeply blessed by their unwavering support, steadfast love, and wise counsel. Even through life's most pressing trials, my parents have demonstrated faith, integrity, and trust in God's plan, a lesson of which I am profoundly grateful. I would also like to recognize my brother and sister, William and Dargan, their spouses, Emily and Rob, and my nieces and nephews. Their support has been indispensable. Finally, I would like to thank God for blessing me with the opportunity to appear before this committee. Throughout my professional career, I have focused on financial markets. After graduating from college, I worked at two large financial institutions, focusing on foreign foreign exchange and interest rates. In twenty twenty three, secretary Besant gave me the opportunity to serve as head of trading at key square group. These experiences have allowed me to develop an expertise in macroeconomics. However, nothing compares to the privilege of serving at the United States treasury. nor the opportunity to be nominated for this position. Among the incredible strengths of the United States, abundant resources, an enduring constitution, a dynamic economy, and an enterprising population, the primacy of our capital markets cannot be overstated. The strength of America's capital markets isn't just a point of pride, it's a cornerstone of our economic leadership. Investors, domestic and foreign, choose the United States because we offer transparency, stability, and rule of law. Our capital markets fuel innovation, support businesses, enable millions of Americans to save for retirement, bolster national security, and raise standards of living. At the core of this system is the U. S. Treasury market, the deepest and most liquid market in the world. The U. S. Dollar serves as the world's reserve currency, and U. S. Treasuries as the world's reserve asset. This unique position underpins borrowing costs across our economy. The office of financial markets plays a central role in safeguarding America's global economic leadership. The office helps finance the nation at the lowest cost to taxpayers over time, and it promotes deep, competitive, and well-regulated capital markets that support investment and economic growth.

Mm-hmm.

If confirmed, I would build upon the strong foundation established by my predecessors, while bringing a market-informed perspective shaped by years of analyzing capital flows, investor behavior, and global financial conditions. My experience has given me a deep appreciation for the importance of transparency, liquidity, and investor confidence in preserving the strength of the US financial system. However, I recognize that the enduring strength of our markets ultimately comes from the American people, the millions of workers, savers, retirees, and investors whose participation power our economy. My goal will be to enhance the primacy of our financial markets, understanding that the great citizens of this country are the most powerful economic force in the world. My priority will be to advance President Trump and Secretary Besson's commitments to strong and vibrant capital markets, preserve the central role of US Treasuries as the world's premier reserve asset, and expand opportunities for Americans to invest with confidence. I will work to support policies that strengthen market integrity, foster capital formation, and maintain the stability that underpins America's economic leadership. Edmund Burke said that a disposition to preserve and an ability to improve, taken together, would be his standard of a statesman. Under the leadership of President Trump and Secretary Besson, if confirmed, that will be my standard as Assistant Secretary for Financial Markets. Thank you for your time today, and I look forward to your questions.

Thank you very much. And I will start out uh with you, Mr. Brooke. Last summer, the Republicans acted to prevent what would have been the largest tax increase in American history. and delivered meaningful pro-growth tax relief through the working families' tax cuts, providing much needed support to American workers and families. Can you just discuss briefly the status of Treasury's ongoing work to implement the working families' tax cuts?

Well, thank you so much, Senator, and and I wanted to start by thanking you for your leadership on getting this bill passed. As you know, it was no easy feat, and I appreciate all the work that you and your staff did to make it a reality.

Okay.

Treasury and the IRS have been moving as quickly as we can to implement the working family's tax cuts, issuing dozens of significant uh guidance documents since enactment. Importantly, this work helped deliver the most successful filing season in American history. Over sixty-three million fire filers claimed to lease one of President Trump's signature tax cuts, no tax on tips, no tax on overtime, the enhanced senior deduction, and no tax on car loan interest. Over six and a half million Trump accounts have already been opened, with nearly one point five million eligible for the one thousand dollar seed contribution. Benefits have been concentrated uh mainly among households earning less than two hundred thousand dollars. We're very proud of the work and if confirmed, look forward to continuing to work with you to advance this agenda.

Thank you very much, and that work is appreciated. Um, Ms. Brown, uh, maintaining US leadership in international economic issues has been a priority of Congress and of this committee. Can you speak to your ongoing work at the Treasury Department to prepare for the upcoming US presidency of the G-twenty?

Sure. Uh, thank you, Senator, for your question, and and it was really lovely to meet you yesterday. Senator, under Secretary Besson's leadership, the treasury is preparing a focused, results-oriented G-twenty presidency that returns the forum towards core economic mission. That is, stronger growth, reduced regulatory burdens, correction of excess of global influences, and a more resilient international financial system. My work thus far at Treasury has focused on really brid- bringing together these core deliverables into concrete action, including on d- debt transparency, digital assets, cross-border payments, and secure food and fertilizer s- supply chains. If confirmed, I will ensure our presidency advances President Trump's America First agenda and produces tangible benefits for American workers, American farmers, and American businesses.

Thank you very much, and and uh Doctor Kothari, you have significant public and private sector experience in economics, including as a professor at MIT. Could you explain how your experience in the public and private sector has prepared you for the role as Treasury's Chief Economist?

Thank you. Thank you, Senator, for that question. And I really enjoyed meeting you yesterday, so thank you for taking the time. Uh, I've been incredibly fortunate in all my professional endeavors. Uh, I've had a long career as an academic at MIT and at University of Rochester, and that that has uh been the highlight of my career. Uh, my experience in the pri- uh, public and private sector has required me to think critically, conduct extensive research, and tackle economic, financial, and accounting problems from all angles. And this is, you know, I I was editor of journal, a world renowned journal for twenty three years, and that meant that submissions of all, on all topics came across my desk, and I had to think critically about whether or not to accept those manuscripts. So, in short, I if confirmed I plan to use the same approach to this role that is to think critically about economic issues. and render an opinion.

Thank you. And finally, Mister McMaster, uh, the Treasury Department plays an important role in promoting domestic economic growth and ensuring leadership in global finance. Can you speak to your commitment to ensuring the United States remains the leader in financial markets?

Uh, thank you for the question, Senator, and uh, thank you for the time yesterday. As I said in my opening statement, uh, the world the dollar is the world's reserve currency and as such treasury is the world's reserve asset uh this is because um you know over the last fifty years treasury has issued debt in a way that is to the lowest possible cost to the taxpayer over time, in a regular and predictable manner. I'm seeking to uh evolve uh treasury issuance with market practices and structural changes in demand. Um you know I I commit to continuing practice and ensuring that we have a broad base of investors uh that value uh the US treasury system.

Thank you.

Senator Whitey.

Thank you very much, Mister Chairman, let me start with you if I could uh Mister Brook and I wanna in particular see if we can reconcile what you told me in the office yesterday and what we found in treasury records um last night. Now in the office yesterday you told me you had nothing to do with the Trump auto uh audit immunity deal. In fact, you said that you didn't know anything about it. So that was your position yesterday. But a Treasury press release on April twenty eighth, nearly a month before the audit immunity deal announced that you were performing the duties of deputy secretary. So let me ask you again, as the second in command at Treasury, what was Treasury's involvement in the Trump audit immunity deal? Audit immunity deal.

Well, thank you for the question, Senator, and thank you for your time yesterday. Um, you know, you gave me a homework assignment and I appreciate you letting me know that you were gonna ask me this question yesterday. Um, I'm sorry to disappoint you, but I I have the same answer that I had yesterday. I did not work on this matter. My understanding is that it is subject of ongoing litigation. And I'd recommend that you talk to the Justice Department about it.

So you're the second in command at treasury. And there is this tax deal forward and you didn't know anything about it you didn't participate in it even though treasury says you're number two there it's just hard to reconcile the two

thank you for the question senator i did not work on that matter

just this week treasury excuse me just this week district court judge williams ruled that the irs audit immunity granted trump to trump the family and its businesses was illegal but no one in the administration has said it won't be followed so yes or no the IRS audit immunity deal stand as of today

Thank you for the question, Senator. Um, as I've said, this is subject to ongoing litigation. I'd refer you to the Justice Department.

Well, with respect to this um litigation, you know, question, this is not active litigation. This was an illegal executive action and you were already acting as a deputy secretary when the sweetheart deal was announced. So it is getting harder and harder to reconcile these various statements that uh that you're making now. Um, does the deal still stand as of uh today?

Thank you for the question, Senator. Um, in addition to to the previous comment I made, one of the other things we talked about yesterday is the importance of taxpayer confidentiality in section sixty one O three. Um, you know, Treasury and the IRS cannot comment on matters regarding taxpayer audits, as that would violate taxpayer privacy laws and would be a violation of the statute.

We're we're not asking that you get in to sixty one O three privacy issues. On this committee we've got a lot of privacy hawks, but we wanna understand the process and I will tell you what you said to me in the office yesterday, is pretty hard to reconcile with what I've heard just been hearing this morning. Now, let me move on, Career IRS attorneys wrote a twenty five page memo preparing defenses against Trump's lawsuit. And they recommended that DOJ move to have the lawsuit dismissed. The IRS reportedly gave this memo to treasury people in April, for the settlement when you were performing the functions of the Deputy Treasury Secretary. Did you see that memo?

I do not recall seeing that memo, so uh, Senator.

So, are you saying that some mid-level treasury and official interfered to block IRS's legal opinion on something this sensitive?

I do not know, Senator.

OK. So, basically, you are answering all of the questions. In fact, I'll ask one more and then we'll sum it up, three days before Trump filed his lawsuit treasury abruptly canceled the contracts with booze allen the contractor whose employees leaked the tax returns this timing is hard again to reconcile as a coincidence were you involved in that decision

i was not senator

alright so i find it just absurd that as the number two position you didn't know much of anything and you've been dodging all the questions dodged them yesterday afternoon dodged them this morning i suspect people right up to the highest levels of the treasury department, had a hand in crafting what I think is one of the most corrupt deals in the history of the United States. And to have you dodging all questions and not reconciling what you said yesterday with what you're saying today, I think it's disqualifying. Thank you, Mr. Chairman.

Thank you, Senator Daines.

Chairman, thank you. Congratulations to each of the nominees here today, and thank you for wanting to jump back in the arena. and serve. In partnership with the administration, this Congress has taken historic steps to advance American leadership in digital assets. In fact, we've established the first federal regulatory framework for payment stable coins through the Genius Act. And I remain hopeful that Congress will finish the work we started on digital asset market structure legislation. But there's one very important piece to the framework that is unfinished and that's the tax code. The current tax code forces taxpayers to apply rules written decades before blockchain technology even existed. Taxpayers deserve rules they can understand, the IRS deserves rules it can administer, and the American entrepreneurs deserve certainty that allows them to build their businesses here rather than overseas. My comprehensive digital asset tax framework that I've been developing over the past year would accomplish those goals. It is built around some common sense principles, reduce unnecessary complexity, increase compliance, protect the tax base, and keep digital asset jobs and the innovation here in United States. This is not about giving digital assets special treatment. Where digital assets function like securities or commodities, my proposal applies familiar tax principles, including wash sale rules, constructive sale rules, and elective mark-to-market regime. Where blockchain technology creates genuinely different transactions, the proposal provides tailored rules for stable coin payments, network fees, staking, lending, investment trusts, passive validation activity, and charitable contributions. Importantly, it pairs this common sense relief with strong guardrails to prevent abuse. The administration has made clear that America should lead the digital asset economy. We need now, here in Congress, to finish the tax side of that ledger, of course, the jurisdiction here in the finance committee. Uh, Mister Brook, could you explain how a comprehensive framework that would reduce needless complexity apply traditional tax safeguards where appropriate, and include strong anti-abuse rules could improve compliance while at the same time protecting the tax base.