President-elect Donald Trump named Scott Bessent, 62, as Treasury Secretary on Friday, selecting a Wall Street veteran who manages the billions of dollar Key Square Capital Management fund. The appointment comes as the dollar hit a one-year high and Trump prepares to implement a sweeping economic agenda including 60% tariffs on Chinese goods and 10% tariffs on other imports.
Bessent served as Chief Investment Officer at Soros Fund Management, where he orchestrated the 1992 bet against the British pound during “Black Wednesday” when sterling was delinked from European currencies. He later led a successful short position against the Japanese yen in 2013. These trades generated billions in profits and established his macro-investment credentials.
The nominee backs extending the 2017 Tax Cuts and Jobs Act despite Congressional Budget Office projections of $6-10 trillion in costs over ten years. To offset this, Bessent advocates “targeted spending reductions and adjustments in taxation.” Federal debt currently stands at $36 trillion, roughly 124% of GDP.
On trade policy, Bessent parts from mainstream economic theory, describing tariffs as a “one-time price adjustment” rather than “inherently inflationary.” He proposes gradual implementation of Trump’s planned tariff regime – 60% on Chinese imports and 10% on other goods. The Treasury Department estimates current tariffs generate $92 billion annually in federal revenue.
Three immediate challenges await: addressing the January debt ceiling deadline, managing the 2025 expiration of $4 trillion in tax cuts from the Tax Cuts and Jobs Act, and implementing Trump’s expanded tariff system. The Treasury role involves overseeing $24 trillion in annual payments, tax collection, debt issuance, and banking regulation.
Bessent’s cryptocurrency stance marks a policy shift. In August interviews with Bloomberg and Fox Business, he called for reducing regulatory barriers for digital assets – a position aligned with Trump’s pledge to make the US “the crypto capital of the planet.” Current crypto market capitalization exceeds $1.6 trillion.
The Senate confirmation process will examine Bessent’s transition from Democratic circles – he donated to Al Gore’s 2000 campaign – to Trump advisor. His role at Soros Fund Management, where he helped manage billions in assets, may draw Republican scrutiny given George Soros’s status as a prominent Democratic donor.
The nomination process involved competition with Howard Lutnick, CEO of the $92 billion Cantor Fitzgerald firm, who became Commerce Secretary instead. Former Federal Reserve governor Kevin Warsh and Apollo Global Management CEO Marc Rowan were also considered. Trump announced the pick before the holiday weekend to ensure media coverage.
If confirmed, Bessent would be the first openly gay Treasury Secretary. He married his husband, a former New York City prosecutor, in 2011. They have two children through surrogacy. This marks the first LGBTQ Senate-confirmed Cabinet member in a Republican administration, following Transportation Secretary Pete Buttigieg’s 2021 confirmation under President Biden.
The dollar rallied to 105.2 on the DXY index after Trump’s victory. Bessent wrote in a November 10 Wall Street Journal op-ed that this “signals investor confidence in US leadership and the dollar’s reserve currency status.” He criticized “four years of reckless spending” while advocating deregulation and tax cuts.
Trump praised Bessent as embodying “the American Dream” and cited his expertise in “International Investment and Geopolitical and Economic Strategy.” The president-elect stated their shared goal: “Make America Rich Again, Prosperous Again, Affordable Again, and most importantly, Great Again.”
The nomination reflects the Republican Party’s evolution on economic policy – combining traditional fiscal conservatism with protectionist trade measures and cryptocurrency innovation. Bessent must now navigate implementing this agenda while managing the Treasury’s core functions of tax collection, debt management, and financial regulation.
