Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview on Friday, June 7, 2024, in Washington, DC, USA.
Stephanie Reynolds | Bloomberg | Getty Images
President-elect Donald Trump on Friday signaled his intention to nominate hedge fund executive Scott Bessent as Treasury secretary, giving the experienced market professional and close Trump supporter a financially important position. I will put it there.
The Key Square Group founder was considered a leading candidate for the position, along with several other potential candidates, including former Federal Reserve board member Kevin Warsh and private equity executive Mark Rowan. .
As Treasury Secretary, Bessent, 62, will be both the nation’s financial watchdog and a key official helping implement President Trump’s ambitious economic policies. A Wall Street mogul and supporter of many of the president-elect’s economic goals, he takes office at a critical time as the U.S. grapples with a growing economy that parallels a long-term worsening debt and deficit problem. .
In a statement, President Trump praised the nominee, calling him “one of the world’s leading international investors and geopolitical and economic strategists. Scott’s story is the story of the American dream.”
Like Mr. Trump, Mr. Bessent supports gradual tariffs and deregulation to boost U.S. business and curb inflation. Additionally, he advocated the revival of manufacturing and energy independence.
“If you’re going to think about the market and think about what’s important, this is a great guy,” said one person, who spoke candidly about the issue on condition of anonymity. “There are not many people who know the market better than Mr. Bessent.”
The prospective nominees also have deep philanthropic ties through Yale University, Rockefeller University, and the Trust for the Preservation of Classic American Homes.
One hurdle Bessent will have to overcome is his past relationship with billionaire investor and global progressive George Soros. He served as chief investment officer of the Soros fund.
But Trump said Bessent “supports my policies to make America more competitive and prevent unfair trade imbalances.”
President Trump’s decision to nominate Bessent to the position comes after a week of intense speculation about who would win. The Wall Street Journal reported earlier this day that Warsh would take the job and then remain there until mid-2026, before potentially sliding onto the Federal Reserve Board to become central bank chairman after Jerome Powell’s term expires. We published a report that suggested something.
Mr. Bessent’s position at the Treasury could pave the way for Mr. Warsh to eventually take the Fed’s post, but he is also being considered as a candidate to chair the National Economic Council.
The Secretary of the Treasury is the linchpin of the White House’s economic policy.
Bessent will be Trump’s chief advisor on fiscal matters, managing a fiscal situation that has seen ballooning debt and deficits in recent years. The United States’ total debt exceeds $36 trillion, of which $28.7 trillion is owed by its citizens. The budget deficit in fiscal 2025 is expected to approach $2 trillion again, with debt service expected to be around $1.2 trillion.
It will also be responsible for supporting the supervision of financial institutions and leading the fight against financial crime. She will succeed Janet Yellen, who previously served as Fed chair, and will be the first woman to hold either position.
Not everyone close to President Trump is happy about the interest in Bessent.
President Trump’s confidant Elon Musk endorsed Cantor Fitzgerald principal Howard Lutnick last week. Others close to the president-elect believe Bessent wasn’t tough enough in his support for tariffs, although Mr. Warsh has also made public statements opposing the tariffs.
