Scott Bessent, founder and CEO of Key Square Group LP, was interviewed in Washington, DC, the United States, on Friday, June 7, 2024.
Stephanie Reynolds | Bloomberg | Getty Images
President-elect Donald Trump said on Friday he intends to nominate hedge fund executive Scott Bessant as Treasury secretary, a move that would put the veteran market expert and Trump loyalist in the spotlight. due to its vital economic status.
The founder of Key Square Group is considered a front-runner for the job, along with several other top contenders including former Fed governor Kevin Warsh and private equity executive Marc Rowan Candidate.
As Treasury secretary, Bessant, 62, will be both the nation’s fiscal watchdog and a key official in helping Trump implement his ambitious economic agenda. He is both a Wall Street heavyweight and an advocate for many of the incoming president’s economic goals, and he will take office at a critical time as the United States grapples with economic growth and chronically worsening debt and deficit problems.
In a statement, Trump called the would-be nominee “one of the world’s foremost international investors, geopolitical and economic strategists. Scott’s story is the story of the American dream.”
Like Trump, Bessant favors the gradual imposition of tariffs and deregulation to boost U.S. business and control inflation. In addition, he also advocates revitalizing manufacturing and energy independence.
“If you’re going to think about the market and what’s important, this guy is very smart,” said a source familiar with Trump’s thinking who spoke on condition of anonymity to speak candidly. “There aren’t many people who understand the market better than Bessant.”
The future nominee also has deep philanthropic ties through Yale University, Rockefeller University and the Trust for the Preservation of Classical American Homes.
One obstacle Bessant must overcome is his past relationship with billionaire investor and global progressive gadfly George Soros. He served as chief investment officer of the Soros Fund.
However, Trump said Bessent “will support my policies that will increase America’s competitiveness and stop unfair trade imbalances.”
Trump’s decision to appoint Bessant to the key post followed a week of intense speculation about who would win. In the past day, the Wall Street Journal published Report Suggestions: Wash can get this joband then work there until mid-2026, when he will move to the Fed and serve as central bank chairman when Jerome Powell’s term expires.
Making Bessent the Treasury secretary could clear the way for Warsh to eventually take over at the Fed, although he is also considered a contender to chair the National Economic Council.
The Treasury secretary is a key figure in the White House’s economic agenda.
Bessant will become a key adviser to Trump on financial matters while managing a financial situation that has ballooned debt and deficits in recent years. The total debt of the United States is Over $36 trillionof which $28.7 trillion is owed to the public. The deficit is expected to be close to $2 trillion again in fiscal 2025, and debt service expenditures are expected to be about $1.2 trillion.
In addition, he will be responsible for helping regulate financial institutions and leading the fight against financial crime. He will succeed outgoing Secretary of State Janet Yellen, who previously served as chair of the Federal Reserve and was the first woman to hold both positions in history.
Not everyone around Trump is happy with his interest in Bessant.
Trump confidante Elon Musk last week Agree Cantor Fitzgerald Chief Howard Lutnick. Others close to the president-elect believe Bessent’s support for the tariffs was not stringent enough, even though Warsh has also made public statements opposing the taxes.
