On the 22nd local time, the elected President Trump nominated 62-year-old billionaire Scott Bessent, founder of global macro investment company Key Square Group, to serve as Secretary of the Treasury. Trump stated that Bessent has long been a staunch advocate of 'America First', and 'he will help usher in a new golden age for America.' Musk had publicly expressed support for another candidate, Howard Lutnick, for the position of Treasury Secretary, calling Bessent a 'conventional' candidate. Musk's action was interpreted as 'public pressure on Trump,' causing dissatisfaction within Trump's transition team.

▲ Musk had publicly stated his support for Howard Lutnick (left)

Supporting a 'gradual' tariff increase method may face significant challenges. Bessent was born in 1962 in South Carolina, USA. He graduated from Yale University in 1984, later joining Soros Fund Management and becoming the company's Chief Investment Officer. After resigning from Soros Fund Management in 2015, Bessent founded Key Square Group.

Reports indicate that Bessent has not spoken to his former boss Soros for 'years'. In 2016, Bessent donated $1 million to Trump's '2017 Presidential Inaugural Committee'. During the 2024 election campaign, Bessent donated $3 million to Republican campaign activities. Reports indicate that Bessent will face many thorny issues early in his tenure (in 2025).

........▲ Bessent

The first issue is the federal debt ceiling. It is reported that both chambers of the U.S. Congress passed a bill last June regarding the federal government's debt ceiling and budget, which stipulates that the debt ceiling will be suspended until early 2025. This means that if Congress cannot resolve the debt ceiling issue before January of next year, Bessent will need to take immediate action to ensure that the U.S. government does not default after the suspension of the debt ceiling bill expires.

Secondly, the provisions related to individual income tax and estate tax in the Tax Cuts and Jobs Act (TCJA) enacted by the Trump administration in 2017 will also expire in 2025. Whether these provisions should be extended is also a focal point of debate between the Republican and Democratic parties.

As Trump's primary economic advisor, Bessent agrees with and advocates for Trump's 'reduction of regulations and tax cuts' policy. In a column published on November 15, Bessent expressed support for Trump's 'tariff increase' policy and rebutted economists' claims that 'tariff increases will lead to inflation.' However, regarding the extent of tariff increases, Bessent believes it should be 'gradual', taking a step-by-step approach to prevent inflation. The choice of 'seeking stability' has relieved Wall Street. Compared to Trump's other controversial cabinet picks, Bessent is a very 'stable' choice. In fact, Trump had been leaning towards selecting Bessent as Treasury Secretary earlier this month. Compared to the relatively high-profile Lutnick, Bessent appeared very low-key in Trump's campaign. It is said that Bessent contacted Musk last weekend to gain his support, but Musk later publicly supported Lutnick, who 'can bring change', on social media.

As the head of the U.S. Department of the Treasury, one of the Secretary's responsibilities is to 'stabilize' Wall Street during economic or market fluctuations, keeping Wall Street calm and confident. In simple terms, this means avoiding panic in the market due to minor economic fluctuations. Trump's appointment of Bessent illustrates his 'seeking stability' attitude on economic issues; he does not want to provoke panic on Wall Street. Bessent's appointment has relieved Wall Street, and some financial professionals have expressed their approval of Trump's choice. 'Many financial observers are optimistic about Bessent; he maintains relationships with traditional business and financial groups while being very loyal to Trump,' said Jagdish Gloek, a senior researcher at the non-profit think tank Manhattan Institute, who believes Bessent will become a cornerstone for stabilizing the U.S. economy.

Isaac Boltansky, head of policy research at global financial services firm BTIG, believes that from a policy perspective, there is not much difference between Bessent and Lutnick, 'but their experiences and personalities differ significantly. These two factors are quite important, as the Secretary of the Treasury needs to communicate frequently with domestic and foreign officials.'#BabyMarvinf9c7值得拥🈶