Scott Bessent, a veteran hedge fund manager who worked for George Soros for many years, has been appointed Treasury Secretary, a decision that President-elect Donald Trump described as difficult but necessary.
When the appointment was announced, Wall Street and the financial markets “breathed a sigh of relief”, according to The Financial Times.
Bessent told The Wall Street Journal (WSJ) that his primary focus as Treasury Secretary would be fulfilling the president-elect’s promises to cut taxes and implement tariffs. He also emphasized plans to enact spending cuts and maintain the U.S. dollar’s status as the world’s reserve currency.
Currently the head of the macro hedge fund Key Square Group LP, Bessent is expected to play a pivotal role in advancing Trump’s agenda, which includes renewing some of Trump’s 2017 tax cuts, set to expire next year and easing financial regulations.
Bessent’s appointment has already influenced the global financial landscape, with currencies rising against the dollar amid diminishing fears of market instability.
Bloomberg highlighted the sense of relief among market participants, crediting Bessent’s Wall Street expertise. Bessent advocated for a gradual approach to implementing trade restrictions and expressed a willingness to negotiate tariff levels, calming concerns of abrupt policy changes.
Stephen Spratt, a strategist at Société Générale in Hong Kong, noted in a client memo that Bessent’s selection could trigger a relief rally in U.S. Treasuries as the risk of a more unconventional candidate was mitigated. Spratt added that Bessent’s moderate stance on tariffs could support Asian currencies.
Trump described Bessent as “one of the smartest guys on Wall Street” and praised his ability to navigate complex financial landscapes.
Bessent’s credentials are impressive. Twice employed by George Soros during the 1990s and 2010s, Bessent generated billions for the billionaire investor. Over the years, he cultivated relationships with some of the world’s wealthiest investors and most influential politicians, including members of Saudi Arabia’s elite families and Japan’s former Prime Minister, Shinzo Abe.
According to Forbes, former colleagues have consistently praised Bessent’s investment acumen. One former associate at Soros Fund Management remarked, “He comes across as a bit reserved and quiet, but he’s tough. He doesn’t suffer fools.” Another noted his ability to make decisive changes, saying, “He can walk away from something if the facts change.”
Bessent’s connection to Trump extends beyond their professional relationship. He has been a long-time friend of Blaine Trump, the wife of Robert Trump, Donald Trump’s late younger brother. Bessent donated $1 million to Trump’s inaugural committee in 2016 and has remained a staunch supporter, attending rallies and advising on economic policy during the 2024 campaign.
This election cycle, Bessent contributed $3 million to support Trump and other Republican candidates. On the eve of the election, he attended Trump’s final rallies in Pittsburgh and Grand Rapids. Speaking to Forbes from the Yale Club, Bessent said, “[Trump] is very sophisticated on economic policy. He has a lot of things he wants to talk about.”
