The stock market is comfortably higher to start the short trading week after President-elect Donald Trump late Friday nominated Scott Bessent to serve as the 79th Treasury secretary of the United States.
In a post on Truth Social, President-elect Trump said Bessent is "one of the world's foremost international investors and geopolitical and economic strategists. Scott's story is that of the American Dream."
He went on to say that Bessent will help "usher in a new Golden Age for the United States" and help the incoming administration "ensure that no Americans are left behind in the next and greatest economic boom."
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"Scott will support policies that drive U.S. competitiveness, stop unfair trade imbalances, and build an economy centered on growth, especially through our coming world energy dominance," Trump added.
Who is Scott Bessent?
Scott Bessent is an investor and hedge fund manager. He served as chief investment officer at Soros Fund Management before founding Key Square Group, an investment firm that focuses on macroeconomic strategies, including analyzing economic, political, and market conditions to place trades on currencies, interest rates, commodities and equities.
"Bessent has been involved in some of the largest and most profitable trades in Hedge Fund History, including shorting the British pound and the Japanese yen, the Argentine debt reorganization and MF Global Italian bonds liquidation," Trump said.
What does Wall Street think of Trump's selection?
"The selection of Scott Bessent as Treasury secretary is extremely positive for markets," says Jay Hatfield, CEO of Infrastructure Capital Advisors. "Bessent has a deep understanding of markets and economics, and, importantly, understands the long-term benefits of taxing consumption through tariffs with proceeds from the tariffs used to fund cuts in taxes on investment. He is also a fiscal hawk who is likely to support spending restraint, which increases national savings and investment."
Hatfield added that federal fiscal irresponsibility reduces U.S. gross domestic product (GDP) growth by 0.75% per year.
"The early word on the street is that, while Bessent has pledged to uphold Trump's promises for tariffs and tax cuts, he is seen as a thoughtful moderate," said Mark Malek, chief investment officer of Siebert, in emailed commentary. "This suggests we might expect a more measured approach to policy deployment."
Sal Guatieri, senior economist at BMO Capital Markets, shares a similar outlook. "Though a proponent of tariffs, he leans more toward targeted measures," Guatieri said. "He favors tax cuts but also supports cutting government spending to control the budget deficit. He could be a steady hand in the administration."
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