Billionaire hedge fund manager Scott Bessent was confirmed by the Senate on Monday as the new U.S. Treasury Secretary, placing him at the heart of implementing Donald Trump’s economic policies—policies that have already sparked concerns globally.
Bessent, a Wall Street veteran originally from South Carolina, has been a strong defender of Trump’s tax cuts and tariff proposals. He has also advocated for measures to secure U.S. supply chains and safeguard the dollar’s global dominance.
The Senate voted 68-29 in favor of Bessent’s confirmation, with support from both parties.
As Treasury Secretary, Bessent will play a key role in shaping the administration’s tax policies, managing the budget, addressing the debt ceiling, and possibly overseeing new tariffs.
Mike Crapo, chair of the Senate Finance Committee, praised Bessent, stating that he is “committed to restoring the prosperity and opportunity” experienced under Trump’s leadership. However, Democratic Senator Ron Wyden raised concerns, questioning whether Bessent would provide the necessary checks on Trump’s economic plans, which could negatively impact consumers and small businesses.
Stance on global affairs and sanctions
Bessent, 62, has expressed support for tougher sanctions on Russian oil companies to help end the war in Ukraine and has signaled a hawkish stance on China. He also reiterated Trump’s commitment to lower taxes and imposing tariffs to address the high cost of living and to pressure foreign nations to align with U.S. economic interests. Trump has specifically warned of tariffs on countries like Mexico and Canada, with implementation expected by February 1.
The Treasury Secretary’s role will be critical as Bessent navigates the balance between supporting Trump’s aggressive economic strategies and mitigating potential global economic instability.
A controversial figure with deep ties to Trump
Bessent is a long-time associate of the Trump family, having known the president for three decades and being friends with his late brother, Robert Trump. He has openly stated his support for Trump, calling himself “all-in for President Trump” during a recent appearance on radio host Roger Stone’s show.
Bessent holds a degree from Yale University and previously served as chief investment officer of Soros Fund Management, the firm founded by liberal billionaire George Soros. In 2015, he established his own hedge fund, raising $2 billion, including a contribution from Soros. However, Bessent has since distanced himself from Soros, stating that they haven’t spoken in years.
Currently the CEO of Key Square Group, Bessent has committed to stepping down and divesting from the hedge fund upon confirmation as Treasury Secretary.
A personal touch: ‘Only-in-America’ story
During his confirmation hearing, Bessent shared a personal anecdote about his early career, recalling how a finance internship with a pullout sofa allowed him to live rent-free in New York while starting his journey in the financial world. He referred to his success as a quintessential “only-in-America” story and expressed a strong desire to preserve that opportunity for future generations.
Bessent has consistently advocated for reforms to the economic system to better serve working Americans. He has criticized global trade practices that he deems unfair and called for using all available tools to realign the economy in favor of U.S. interests.
Support for federal reserve independence
While Bessent had previously suggested that Trump should nominate a “shadow Fed chair” to counteract Federal Reserve Chairman Jerome Powell’s influence, he has since dropped that idea and reaffirmed his commitment to supporting the Fed’s independence in monetary policymaking.
As Treasury Secretary, Bessent will have a crucial role in shaping economic policy, and his ability to navigate Trump’s economic agenda will have far-reaching implications for both the U.S. economy and the world.
AFP
