Trump taps hedge fund manager Scott Bessent to run Treasury
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Scott Bessent, President-elect Trump's choice for Treasury secretary. Photo: Stefani Reynolds/Bloomberg via Getty Images
President-elect Trump will nominate Scott Bessent as Treasury secretary, positioning him as the top economic official representing the nation on the world stage.
Why it matters: The pick caps intense jockeying for the influential role that, at times, spilled out into public view. The process has been closely watched by financial markets for what it might signal about the direction of Trump's economic policy.
Zoom in: Bessent, 62, founded hedge fund Key Square Capital Management. Before that, he spent most of his career at Soros Capital Management, including as chief investment officer from 2011 to 2015.
- Bessent has been an avid fundraiser for Trump and a defender of the president-elect in media appearances.
- Trump has threatened to impose high tariffs on all U.S. imports. Some economists have warned that such aggressive tariffs could reignite inflation.
- In recent interviews, Bessent has tried to play down Trump's trade threats.
- Fund manager John Paulson, a close Trump adviser who was initially the favorite for Treasury before backing out of contention, called Bessent "an outstanding pick" in a statement and said "we are off to a great start."
What to watch: Bessent would be a key salesman for Trump's fiscal agenda on Capitol Hill at a pivotal time.
- There are big questions about the fate of Trump-era tax cuts expiring next year — and the range of other tax cuts promised on the campaign trail.
- Bessent would also take charge of economic relations between the U.S. and the rest of the world, with Trump's threat of tariffs — and an ensuing trade war — looming.
- His would-be predecessor, Janet Yellen, imposed sanctions on Russia aimed at curbing the war in Ukraine.
- U.S.-China relations remain frosty, though Yellen established a so-called "Financial Working Group" with China — opening up channels between the two sides in the event of global market stress.
The intrigue: Bessent was seen as the front-runner for the role until a late push for the job by transition co-chair Howard Lutnick, who ended up being picked for Commerce secretary.
- Lutnick, who is more of a hardliner on tariffs than Bessent, will have oversight of trade issues.
Editor's note: This story has been updated with reactions to Bessent's nomination.
