Scott Besant, founder and CEO of Key Square Group LP, during an interview in Washington, D.C., US, on Friday, June 7, 2024.
Stephanie Reynolds | Bloomberg | Getty Images
President-elect Donald Trump on Friday signaled his intention to nominate hedge fund executive Scott Bessent as Treasury secretary, a move that puts a veteran market supporter and close Trump loyalist in a critical economic position.
The Key Square Group founder was considered a front-runner for the job along with a few other close contenders including former Federal Reserve Governor Kevin Warsh and private equity executive Mark Rowan.
As head of the Treasury Department, Bescent, 62, will be America's financial watchdog as well as a key official to help Trump enact his ambitious economic agenda. A Wall Street heavyweight who champions many of the next president's economic goals, he will take office at a critical time as the United States grapples with a growing economy along with long-simmering debt and deficit issues.
In a statement, Trump described the potential candidate as “one of the world's leading international investors, geopolitical and economic strategists. Scott's story is the story of the American dream.”
Like Trump, Besant favors gradual tariffs and deregulation to drive American business and control inflation. In addition, he called for the revival of industrialization as well as energy independence.
“If you're going to think about the market and think about what matters, the guy is great,” said a source familiar with Trump's thinking, who spoke on the condition of anonymity to speak frankly about the matter. “There aren't many people who know the market better than Besant.”
The potential candidate also has deep philanthropic ties through Yale University along with Rockefeller University and the Fund for the Preservation of Classic American Homes.
One hurdle Besant will have to overcome is his past association with billionaire investor and global progressivist George Soros. He served as chief investment officer at the Soros Fund.
However, Trump said that Bescent “will support my policies that will strengthen the competitiveness of the United States and stop unfair trade imbalances.”
Trump's decision to appoint Picent to the top post comes after a week of intense speculation about who would win. Over the past day, the Wall Street Journal published 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 over as chairman of the central bank after Jerome Powell's term ends.
Bessent's appointment to the Treasury job could pave the way for Warsh to eventually take over the Fed job, although he is also believed to be a contender to head the National Economic Council.
The Treasury Secretary is the backbone of the White House's economic agenda.
Besant will be Trump's chief advisor on financial issues as he manages a fiscal situation that has seen debt and deficits balloon in recent years. The total debt of the United States is more than $36 trillion, of which $28.7 trillion is owed to the public. The deficit is expected to again approach $2 trillion in fiscal year 2025, with debt service payments expected to be around $1.2 trillion.
In addition, he will be responsible for helping to supervise financial institutions and leading the fight against financial crimes. He will replace outgoing Secretary Janet Yellen, who previously served as Fed chair, the first woman ever to hold either role.
Not everyone around Trump was happy about his interest in Besant.
Elon Musk, who is close to Trump, last week endorsed Cantor Fitzgerald Chairman Howard Lutnick. Others close to the president-elect believe that Besant has not been tough enough in his support of tariffs, although Warsh has also made public statements against tariffs.
