Scott Bessent, founder and chief executive officer of Key Square Group LP, during an interview in Washington, DC, US, on Friday, June 7, 2024.
Stefani Reynolds | Bloomberg | Getty Images
President-elect Donald Trump has signaled his intention to nominate hedge fund executive Scott Bessent as his Treasury secretary, sources tell CNBC and NBC News.
The founder of Key Square Group had been considered a strong favorite for the position along with a few other close contenders including former Fed Governor Kevin Warsh and private equity executive Marc Rowan.
As head of Treasury, Bessent, 62, will be both the U.S. fiscal watchdog as well as a key official to help Trump enact his ambitious economic agenda. Both a Wall Street heavyweight and advocate for many of the incoming president’s economic goals, he would come to office at a critical time as the U.S. wrestles with a growing economy alongside long-festering debt and deficit issues.
Like Trump, Bessent favors gradual tariffs and deregulation to push American business and control inflation. In addition, Bessent has advocated for a revival in manufacturing as well as energy independence.
“If you’re going to think about the market and think about what matters, the guy is brilliant,” said a source familiar with Trump’s thinking who spoke on condition of anonymity to talk frankly about the matter. “There aren’t many people who know the market better than Bessent does.”
The prospective nominee also has deep philanthropic ties through Yale University along with Rockefeller University and Classical American homes Preservation Trust.
One obstacle Bessent will have to overcome is his past affiliation with billionaire investor and global gadfly George Soros. Bessent served as chief investment officer for Soros’ fund.
CNBC has reached out to the Trump transition team for comment.
Trump’s apparent decision to name Bessent to the key position follows a week of intense speculation about who would win out. Over the past day, the Wall Street Journal posted a report suggesting that Warsh could get the job then work there until mid-2026 when he would slide over to the Federal Reserve and take the chair at the Federal Reserve after Jerome Powell’s term expires.
Putting Bessent in the Treasury job could then clear the way for Warsh eventually to take over at the central bank, though he also is thought to be contender to head the National Economic Council.
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