Trump expected to tap Scott Bessent as Secretary of Treasury
Adds quotes
Nov 22 (Reuters) -President-elect Donald Trump is expected to pick prominent investor Scott Bessent to take on the role of U.S. Treasury secretary, sources told Reuters on Friday.
One source briefed by the Trump transition team and a donor briefed on the plans told Reuters of Trump's intention to pick Bessent. The Trump transition team did not immediately respond to a request for comment.
COMMENTS:
CHRISTOPHER HODGE, ECONOMIST U.S., NATIXIS, NEW YORK
"For me it was really trade hawk vs market practitioner. If Trump goes full throttle with tariffs as promised during the campaign, equities will react poorly. Someone attuned to markets will be able to convey the potential risks and at the very least take a more measured, incremental approach. "
“In his first term, Steven Mnuchin served as Treasury Secretary under Trump and was a very key policy advisor. The selection of another market practitioner makes us think that Trump will be inclined to listen to market signals about potential policies. This will include the negative feedback to be expected if Trump applies across-the-board tariffs of 10-20% on all incoming goods, including 60% on Chinese goods.”
MICHAEL PURVES, CEO, TALLBACKEN CAPITAL ADVISORS
“This is the big thing everyone’s been waiting for a few weeks, the Treasury pick.”
“There was some level of anxiety priced in that Trump was going to pick someone who was not good or some kind of absolute tariff fanatic, so this is a very good answer for Wall Street.”
“Bessent has a lot of respect on Wall Street, he understands the world, he speaks Wall Street.”
“I still think he has one of the hardest jobs you could have right now. Given Trump’s agenda, there are a lot of complicating dynamics like lowering consumer prices and putting on tariffs at the same time.”
“He’s got to square the circle of being a bond salesman while also selling increasing fiscal deficits and explaining tariffs that are going to be inflationary to some degree.”
“It’s going to be a stormy ride.”
“In the near term, this should be equity and bond market supportive.”
RYAN SWEET, CHIEF US ECONOMIST, OXFORD ECONOMICS, WEST CHESTER, PENNSYLVANIA
"Bessent has been on the side of less aggressive tariffs, consistent with our current forecast. Things can change but his nomination reduces the risk that some of the more severe tariff scenarios come to fruition.
"His nomination boosts our conviction in our assumptions around fiscal and trade policy-that Trump gets some, but not all that he proposed on the campaign trail. It's also important to remember that Presidents and even Treasury secretaries inherit economies and they're getting a good one.
"Hopefully he changes his tune on the idea of a shadow Fed Chair, which doesn't make any sense."
JOHN PAULSON, INVESTOR AND FOUNDER OF PAULSON & CO
“Scott Bessent is an outstanding pick for Treasury Secretary. He has the market experience and financial acumen to successfully implement President Trump's economic agenda. We are off to a great start.”
JJ KINAHAN, CEO, IG NORTH AMERICA, CHICAGO
"It's nice to have somebody who understands how their policies can affect the markets, all the way through."
QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA
"He certainly knows the economy, he knows markets, he's very experienced in the financial/capital markets. And again, because his name had come out so early, due diligence was in essence performed by commentary weeks ago and it was all positive."
"So again, it's a name with tremendous broad experience in capital markets, and that's going to be helpful because the of number of scenarios, particularly with the deficit, particularly with concerns over inflation and inflation expectations due to tariffs. It's going to be helpful to have someone at the helm of Treasury who's experienced in, and has a long history working in markets."
LINDSEY JOHNSON, CEO, CONSUMER BANKERS ASSOCIATION , WASHINGTON
“As an experienced and accomplished businessman, we applaud Mr. Bessent’s recent comments in which he has called for a surge in small business optimism, a smart deregulatory banking agenda, and support for Main Street.
“If confirmed, we look forward to working with Mr. Bessent to advocate for sound financial regulatory policy that enable banks to better support consumers, small businesses, and the economy at large.”
(Compiled by the Global Finance & Markets Breaking News team)
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