Unlock the White House Watch newsletter for free
Your guide to what the 2024 US election means for Washington and the world
Scott Bessent, a top fundraiser for Donald Trump, is canvassing candidates to serve as his deputy as he positions himself to become Treasury secretary, one of the most important positions in the president-elect’s cabinet.
Bessent, a hedge fund manager who has served as an economic adviser to the former president, is widely viewed as a leading candidate for the post in Trump’s new administration.
Bessent declined to comment. But one person close to the billionaire investor said he was only seeking suggestions for a deputy Treasury secretary because Trump’s transition team had asked him for the names of candidates whom he had helped to vet.
“Some people may have mistaken those as direct interviews, which they were not,” said the person. The Trump campaign did not respond to a request for comment.
On Wednesday, Bessent told CNBC there had been “no discussions about jobs”, but people familiar with Bessent’s efforts said he was acting as if he would serve in the influential role.
“I’m going to do whatever President Trump asks,” he told CNBC when asked if he would join the administration.
Bessent, the founder of Key Square Capital Management, last year became one of the top economic advisers to Trump, who recently described him as “one of the top analysts on Wall Street”.
A billionaire who made his fortune betting against the Japanese yen with liberal philanthropist George Soros, he has backed many of Trump’s economic policies, including imposing wide-ranging tariffs on imports.
One person familiar with the situation cautioned that it was unclear whether Bessent had been offered the Treasury post or was “measuring the drapes prematurely” for a position in government.
Other possible contenders for the position include John Paulson, another billionaire hedge fund manager and Trump campaign donor, and Robert Lighthizer, the former US trade representative. Senator Bill Hagerty, who served as US ambassador to Japan during the first Trump administration, has also been mentioned in connection with the job.
If nominated and confirmed for the post by the Senate, Bessent would assume one of the most powerful positions in the Trump administration.
The Treasury secretary is tasked with keeping the world’s largest economy and government bond market on a stable footing as well as helping to craft and execute the president’s economic agenda. The department is also involved in the imposition of sanctions, including on Russia over its full-scale invasion of Ukraine.
In a recent interview with the Financial Times, Bessent framed Trump’s pledge to impose sweeping tariffs on imports as a “maximalist” threat that could be altered during talks with trading partners. “It’s escalate to de-escalate,” he said.
Bessent told CNBC he would recommend that tariffs be “layered in gradually” so any inflationary impact would emerge over time and be offset by disinflationary policies, such as deregulation.
He also signalled that he backed traditional Treasury views, including the importance of a strong US dollar as the world’s reserve currency. During his first term, Trump said he was not “thrilled” about the strength of the dollar because it had made things difficult for US exporters, such as Boeing.
But Bessent has also backed unorthodox policies that economists and investors warn could increase volatility.
Earlier this year, he floated the idea of nominating a “shadow” chair of the Federal Reserve, who would not sit on the US central bank’s policymaking committee but would give guidance on the future direction of monetary policy. Such an unprecedented move would undermine the influence of Jay Powell, the current Fed chair.
Additional reporting by Alex Rogers in Palm Beach
Source link
