President-elect Trump nominates finance veteran Scott Bessent for U.S. Treasury secretary, favoring tax reform

From Investing.com: 2024-11-22 21:10:36

President-elect Donald Trump nominated Scott Bessent as U.S. Treasury secretary, choosing an advocate for tax reform and deregulation. Bessent, a finance veteran, spent days advising Trump in Florida, leading to his selection. The appointment caps a week of Wall Street luminaries vying for the position, with Bessent ultimately prevailing.

Bessent, a South Carolina native, has a finance career that includes working for George Soros and Jim Chanos. He correctly bet on Trump’s victory and advocates for tax reform and deregulation. Market analysts see his nomination as reducing the likelihood of severe tariffs, favoring growth and market stability.

As Treasury secretary, Bessent will oversee the U.S. economy, including managing debt, financial regulation, and international financial institutions. He faces challenges such as growing deficits due to Trump’s tax plans. Bessent’s agenda aims to boost economic growth and market confidence, despite concerns about unsustainable debt levels.

Bessent may differ from current Secretary Janet Yellen in areas like climate change policy and financial support for Ukraine. Trump’s focus on fossil fuel energy and ending clean-energy subsidies contrasts with Yellen’s approach. Bessent’s role as Treasury boss includes close coordination with the Federal Reserve, with potential impact on Fed policy and financial markets.

The selection of Bessent concludes a topsy-turvy search process that saw various candidates considered for the Treasury secretary role. From early favorites like John Paulson to eventual pick Scott Bessent, the selection process involved notable twists and turns. Howard Lutnick and other contenders added to the drama, showcasing the soap opera nature of the selection process.



Read more at Investing.com: Trump taps Scott Bessent for Treasury, capping long drama over choice By Reuters