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."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"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."
Related Content
- Trump Picks Dr. Oz as Head of Medicare and Medicaid
- Six Ways Trump Could Change Your Retirement
- Stocks to Buy for a Trump Presidency
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D PremiumsIn 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
Japan Tariffs: 5 Things That Might Get More Expensive for YouPresident Donald Trump's trade agreement with Japan features a 15% reciprocal tariff for all imported products, which could impact the prices of these items when you go shopping.
-
Five Questions to Help Ensure a Happy, Secure RetirementYou need to drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting ByLearning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.
-
How to Buy an Annuity Online (Without Regret)You should never be rushed into buying an annuity. But now that they can be sold quickly and easily online, you need to be more alert than ever to pushy salesmanship. Here are four signs you're working online with a professional.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
