Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview in Washington, DC, USA, Friday, June 7, 2024.
Stephanie Reynolds | Bloomberg Getty Images
President-elect Donald Trump signaled his intention to nominate hedge fund executive Scott Bessent as secretary of the Treasury, in a move that puts experienced market pro and close Trump loyalist in a critical economic position.
The founder of Key Square Group has been considered a strong favorite for the position alongside several other close contenders including former Fed Governor Kevin Warsh and private equity executive Marc Rowan.
As head of the Treasury, Bessent, 62, will be the US fiscal watchdog as well as a key official to help Trump implement his ambitious economic agenda. Both a Wall Street heavyweight and an advocate for many of the incoming president’s economic goals, he will come to office at a critical time as the U.S. struggles with a growing economy along with long-standing debt and deficit problems.
Trump in a statement called the nominee “one of the most important International Investors and Geopolitical and Economic Strategists in the World. Scott’s story is that of the American Dream.”
Like Trump, Bessent favors gradual tariffs and deregulation to boost American business and control inflation. In addition, they have encouraged a revival in manufacturing as well as energy independence.
“If you’re going to think about the market and think about what’s important, 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 understand the market better than Bessent.”
The nominee also has deep philanthropic ties through Yale University along with Rockefeller University and the American Homes Preservation Trust.
One of the obstacles Bessent had to overcome was his relationship with billionaire investor and global progressive gadfly George Soros. He is the chief investment officer for the Soros fund.
Trump, though, said Bessent “will support policies that will drive US competitiveness, and end unfair trade imbalances.”
Trump’s decision to name Bessent to the key position came after a week of intense speculation about who would win. Over the past day, the Wall Street Journal posted a report indicating that Warsh could get the job, then work there until mid-2026 when he will move to the Federal Reserve and take a seat at the central bank after Jerome Powell’s term expires.
Placing Bessent in the Treasury job then could clear the way for Warsh to eventually take over at the Fed, although he was also considered a contender to lead the National Economic Council.
The Treasury Secretary is the lynchpin for the White House’s economic agenda.
Bessent will be Trump’s chief adviser on fiscal matters as he manages a financial situation that has been plagued by debt and deficits in recent years. The US has a total debt of over $36 trillion, of which $28.7 trillion is public debt. The deficit is expected to approach $2 trillion in fiscal 2025, with debt service payments estimated at $1.2 trillion.
In addition, they will be responsible for helping monitor financial institutions and leading the fight against financial crime. She will replace outgoing Secretary Janet Yellen, who previously served as Fed chair, the first woman to take either role.
Not everyone around Trump is happy with his interest in Bessent.
Trump confidante Elon Musk last week endorsed Cantor Fitzgerald chief Howard Lutnick. Others who are close to the president-elect think Bessent has not been strict enough in his support for tariffs, although Warsh has also made public statements against retribution.