Scott Bessent was positioned directly to the left of Donald Trump during the then-presidential candidate’s presentation of his economic agenda to a room full of Wall Street elites at the Economic Club of New York in September.
Now nominated for the top position at the US Treasury department, Bessent will step into the spotlight as the most crucial economic figure in the Trump administration.
Trump’s choice to select the hedge fund manager comes after a turbulent battle for the Treasury role, which led to the president-elect expanding his search last minute following intense infighting between Bessent’s team and another top contender, billionaire investor Howard Lutnick.
In opting for Bessent, Trump has diverged from the usual pattern that influenced his other senior cabinet selections, with Bessent being viewed as a pragmatic choice capable of handling the significant responsibilities of the prominent role.
If confirmed by the Senate, Bessent will face a multitude of challenges, including navigating substantial tax cuts through legislation, engaging with concerned trading partners on tariff negotiations, and managing the economic repercussions of potential mass deportations as promised by Trump.
One major aspect of the job will be overseeing the $27 trillion Treasury market, with Trump’s proposed plans expected to significantly increase the country’s debt and inflation rates.
There are concerns about Trump potentially encroaching on the Fed’s independence in his second term, with Bessent likely to play a crucial role in maintaining stability and market confidence.
The day-to-day operations of managing the vast number of employees within the department will be a substantial task, especially for someone without prior government experience.
It will be essential for Bessent to surround himself with experienced deputies to navigate the complexities of running a government agency effectively.