The announcement that President-elect Donald Trump’s long-anticipated pick for Treasury Secretary will be hedge fund manager Scott Bessent is being received well by business leaders and markets, who are reassured that Bessent finally emerged on top after a selection process and jockeying by top candidates.
[time-brightcove not-tgx=”true”]Indeed, I heard from several CEOs who had been on edge over the last couple of weeks as Trump’s search for Treasury Secretary remained unfinished, raising different sets of concerns about other contenders. By far, Bessent, a global macro investor, was the only contender who CEOs viewed as qualified and competent and able to work constructively with Trump. As I told The Washington Post, “Bessent has the backing of everybody on Wall Street.”
Bessent has spent much of his career avoiding the spotlight. Still, he has a reputation as an experienced investor and savvy businessman and entrepreneur with decades of expertise navigating macro markets. The list of Bessent’s supporters, mentors and business partners reads as a who’s who of Wall Street across institutions and political parties.
After getting his start on Wall Street as an intern to a legendary investor, Jim Rogers, Bessent worked at Brown Brothers Harriman before joining up with Jim Chanos, the short seller who correctly predicted the downfall of Enron, Wirecard, and other corporate disasters. Bessent then became a partner to George Soros at Soros Fund Management, where alongside Stanley Druckenmiller, he was a driving force behind perhaps Soros’ most famous trade, his 1992 shorting of the British pound which won Soros, Bessent and their team over $1 billion in profits.
Roughly half of $ 4 billion capital behind Bessent’s own firm, Key Square, came from Soros investment. If confirmed by the Senate, Bessent would be the first openly-gay Treasury Secretary in U.S. history. He is a graduate of Yale and a generous supporter of the university.
The business community expects Bessent to reach out and work closely with business leaders, as well as policymakers from both sides of the aisle, to create economic growth and usher in the “golden age” of American economic opportunity Trump touts. Unlike some of Trump’s other cabinet selections, Bessent is regarded as a problem solver whose support bridges ideological and sector divides. Bessent is a longtime Republican and a loyal supporter of Trump, but he has also given generously to Democratic presidential candidates, including Al Gore and Barack Obama. He was supported in his bid for Treasury Secretary by individuals as different as former Trump National Economic Council and Fox Business channel anchor Larry Kudlow, former Trump advisor Steve Bannon, JPMorgan CEO Jamie Dimon, Evercore Senior Chairman Roger Altman, and Hayman Capital Founder Kyle Bass.
Bessent’s approach should help when it comes to key issues, such as tariffs, where business leaders are most apprehensive about Trump’s economic policy. While Bessent has expressed strong support for tariffs, so too have many CEOs—as long as tariffs are targeted, selective and carefully executed. Bessent discounts the inflationary effect that worries most economists about tariffs and the likelihood of punishing retaliatory moves from trading partners creating barriers for US exports many CEOs fear as he believes Trump’s plan is just to threaten these measures as negotiation tools.
Sure, Bessent will have his work cut out for him in striking a balance between driving American economic growth and satisfying Trump’s tariff whims, but the business community is eager to engage as partners in charting a constructive path forward. Trump’s Trump’s selection of Bessent increases the chances of that happening.
Bessent’s nomination shows he was able to hold his ground against powerful opponents in the Trump camp. Economists and business leaders will have differences his decisions but will respect his decision-making style. Bessent’s track record of engagement provides a genuine reason for optimism for the American economy’s growth.
