2024-11-23 03:08:00
US President-elect Donald Trump has selected investor and hedge fund manager Scott Bessent for the office of Treasury Secretary. Among other things, Bessent should eliminate imbalances in foreign trade and focus on economic growth, Trump announced on Friday (local time) on his social media platform Truth Social. Bessent was considered the favorite in the crowded field of candidates for the coveted position.
“Scott is widely respected as one of the world’s leading international investors and geopolitical and economic strategists,” Trump wrote. Bessent is the founder of the hedge fund Key Square Group. He was previously Chief Investment Officer of George Soros’ Soros Fund Management and is considered an expert in global macro investing. The 62-year-old has advocated for tax reform and deregulation, particularly to boost bank lending and energy production, as he recently wrote in an opinion piece for the Wall Street Journal.
The market’s rebound after Trump’s victory, Bessent wrote, signals investor expectations for higher growth, lower volatility and inflation, and a revitalized economy for all Americans.
Must implement campaign promises
The next US Treasury Secretary will, among other things, have to find a way to implement Trump’s campaign promises such as tax cuts and new import tariffs. Some economists had criticized the plans that would lead to higher prices for US consumers and put a strain on the US government budget. However, Bessent had defended the proposals in recent months.
As the 79th Treasury secretary, Bessent would essentially be the highest-ranking U.S. economic official responsible for maintaining operations in the world’s largest economy. The Treasury Department chief also directs U.S. financial sanctions policy, oversees the U.S.-led International Monetary Fund, the World Bank and other international financial institutions, and is responsible for reviewing foreign investment in the U.S. for national security purposes.
The decision came after days of deliberation by Trump. His confidant Howard Lutnick was also interviewed for the post of Finance Minister – and was supported by, among others, tech billionaire Elon Musk. However, in the end, Trump nominated Lutnick for the position of Commerce Secretary.
Further appointments were announced
Trump also announced further appointments. Russell Vought is expected to become budget director in the White House from 2017 to 2021, as he did in his first term. Congresswoman Lori Chavez-DeRemer will be Secretary of Labor, and Janette Nesheiwat will become the top US doctor as Surgeon General. The doctor Dave Weldon will head the CDC health authority in the future, and Marty Makary will be head of the Food and Drug Administration (FDA), according to Trump. Former football player Scott Turner is set to become Minister of Housing and Urban Development.
According to media reports, former intelligence chief Richard Grenell is to be appointed as a special envoy for the war in Ukraine. Grenell, who served as Trump’s ambassador to Germany and was deputy director of domestic intelligence during his first term, would then play a key role in Trump’s efforts to end the war.
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How does Scott Bessent plan to balance tax cuts and tariffs to avoid higher consumer prices?
**Interview with Scott Bessent, President-elect Donald Trump’s Appointee for Treasury Secretary**
**Interviewer:** Thank you for joining us today, Mr. Bessent. Congratulations on your appointment as Treasury Secretary. How are you feeling about this new role?
**Scott Bessent:** Thank you! I’m honored and excited to take on this role. I see it as a tremendous opportunity to influence the economic direction of our country, especially as we face challenges like foreign trade imbalances and a need for robust economic growth.
**Interviewer:** President-elect Trump mentioned that you will focus on eliminating imbalances in foreign trade. Can you elaborate on what strategies you plan to implement to achieve this?
**Scott Bessent:** Absolutely. We’ll be looking at both tariffs and trade agreements to create a more level playing field for American businesses. Our goal is to ensure that exports can thrive while maintaining reasonable import levels that don’t harm American jobs. I believe that through strategic economic policy, we can bolster our trade position without overly burdening consumers.
**Interviewer:** You’ve had a long career in investment and finance, including your previous role as Chief Investment Officer at Soros Fund Management. How will that experience shape your approach as Treasury Secretary?
**Scott Bessent:** My background in macro investing has given me deep insights into how global economic trends affect our domestic landscape. I plan to leverage that expertise to inform decisions on tax reform and deregulation, which are critical for fostering a favorable business environment. I believe that deregulation can encourage bank lending, energy production, and ultimately support job creation.
**Interviewer:** Speaking of tax reform, some economists have expressed concerns about the potential impact of proposed tax cuts and import tariffs leading to higher consumer prices. How do you address these concerns?
**Scott Bessent:** It’s a valid concern, and it’s crucial to strike a balance. We aim to implement tax cuts that stimulate growth and innovation without disproportionately impacting consumers. Additionally, tariffs need to be carefully calibrated to support U.S. industry while minimizing price spikes. I’m committed to transparency and will engage with economists to navigate these complexities effectively.
**Interviewer:** In a recent opinion piece, you mentioned that the market’s rebound signals investor expectations for a vibrant economy. What measures do you think will be most impactful in sustaining this momentum?
**Scott Bessent:** Sustaining economic momentum will hinge on maintaining investor confidence. We will focus on policies that enhance productivity and promote job growth, such as infrastructure investments and support for technological advancements. If we can create a business-friendly environment, I believe the market will respond positively.
**Interviewer:** Lastly, how do you plan to keep the American public informed about the initiatives coming out of the Treasury Department under your leadership?
**Scott Bessent:** Communication will be a priority for me. I plan to utilize social media platforms, press briefings, and public engagements to share our progress and initiatives with the American people. It’s essential that citizens feel connected to and informed about the economic decisions affecting their lives.
**Interviewer:** Thank you for your insights, Mr. Bessent. We wish you success in your new position as Treasury Secretary.
**Scott Bessent:** Thank you for having me. I’m looking forward to this journey!
