Scott Bessent, Founder and CEO of Key Square Group LP, during an interview in Washington, DC, USA, on Friday, June 7, 2024.
Stefani Reynolds | Bloomberg | Getty Images
President-elect Donald Trump signaled Friday his intention to nominate hedge fund manager Scott Bessent as his Treasury secretary, a move that puts a seasoned market professional and close Trump supporter in a critical economic situation.
The Key Square Group founder was considered a strong favorite for the position along with several other close contenders, including former Fed Governor Kevin Warsh and private equity executive Marc Rowan.
As head of the Treasury Department, Bessent, 62, will be both the U.S. financial watchdog and a key official who will help Trump implement his ambitious economic agenda. Both a Wall Street heavyweight and a champion of many of the new president's economic goals, he would take office at a critical time as the U.S. grapples with a growing economy and long-simmering debt and deficit problems.
Trump called the potential nominee in a statement “one of the world’s leading international investors and geopolitical and economic strategists. Scott’s story is one of the American dream.”
Like Trump, Bessent advocates gradual tariffs and deregulation to stimulate the American economy and control inflation. Additionally, he has advocated for a revival of manufacturing and energy independence.
“If you think about the market and think about what matters, the guy is brilliant,” said a source familiar with Trump's thinking, who spoke on condition of anonymity to speak candidly about the matter. “There aren’t many people who know the market better than Bessent.”
The potential candidate also has strong philanthropic relationships with Yale University, as well as Rockefeller University and the Classical American Homes Preservation Trust.
One obstacle Bessent must overcome is his former association with billionaire investor and global progressive troublemaker George Soros. He served as chief investment officer for the Soros fund.
But Trump said Bessent “will support my policies that will increase U.S. competitiveness and stop unfair trade imbalances.”
Trump's decision to appoint Bessent to the key job follows a week of intense speculation about who would win. Last day, the Wall Street Journal published a report saying Warsh could get the job and work there until mid-2026, then move to the Federal Reserve and take over as chairman of the central bank when Jerome Powell's term expires.
If Bessent takes the Treasury job, it could eventually clear the path for Warsh to take over the Fed, although he is also considered a contender to chair the National Economic Council.
The Treasury Secretary is the linchpin of the White House's economic agenda.
Bessent will be Trump's top adviser on tax issues while managing a financial situation in which debts and deficits have soared in recent years. The United States has a total debt of more than $36 trillion, of which $28.7 trillion is public debt. The deficit is expected to approach $2 trillion again in fiscal 2025, with debt service payments expected to be around $1.2 trillion.
He will also be responsible for overseeing financial institutions and combating financial crime. He would replace outgoing Secretary Janet Yellen, who previously served as Fed chair, making her the first woman ever to serve in either role.
Not everyone around Trump was happy with his interest in Bessent.
Trump confidant Elon Musk supported Cantor-Fitzgerald boss Howard Lutnick last week. Others close to the president-elect believe Bessent has not been consistent enough in his support of the tariffs, even though Warsh has also publicly spoken out against the tariffs.
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