Scott Bessent, a longstanding Yale University professor and hedge fund manager, has been appointed as President-elect Donald Trump’s next Treasury Secretary.
Scott Bessent, a hedge fund manager, has been appointed Treasury Secretary by President-elect Donald Trump. On Friday, Trump selected the guy who spent several years as a Yale University professor. It’s important to remember that Bessent’s position is regarded as one of the most influential in Washington. The enormous US economy and financial markets are heavily influenced by the treasury secretary.
Up until now, Trump has mostly chosen his team based on political allegiance rather than knowledge and experience. However, considering Trump’s intentions to use tariffs to change international trade, many were closely observing his choice for Treasury. The 62-year-old hedge fund investor has been a vocal supporter of deregulation and tax reform.
The difficult path that Bessent must travel
Bessent will be following in the footsteps of other financial titans who have already accepted the position. Among them are former Goldman Sachs executives Hank Paulson, Robert Rubin, and Trump’s first Treasury director, Steven Mnuchin. The first woman to hold the position, current Treasury Secretary Janet Yellen, has previously served on the White House Council of Economic Advisers and chaired the Federal Reserve.
Bessent, the 79th US Treasury Secretary, is in charge of keeping the world’s largest economy running smoothly. This includes collecting taxes, paying the nation’s bills, managing the $28.6 trillion Treasury debt market, and supervising financial regulation, which includes managing and averting market crises. In a sense, he will be the top US economic official.
However, Trump’s proposals to prolong expiring tax cuts next year and add substantial new breaks, such eliminating taxes on Social Security income, would make it difficult for the financier to manage federal deficits, which are expected to increase by around $8 trillion over a ten-year period.
Bessent has maintained that Trump’s policy would spur greater economic growth, which would increase revenue, while defending his new leader. In addition, Bessent is expected to carry on Yellen’s legacy by leading the G7 countries in providing Ukraine with tens of billions of dollars in economic assistance. She may also respond to calls to strengthen sanctions against China and Russia.
