News Digest: Donald Trump Picks Hedge Fund Executive Scott Bessent as Treasury Secretary
November 26, 2024
News Digest:
President-elect Donald Trump has chosen Scott Bessent, founder of hedge fund Key Square Group, as Treasury Secretary. Bessent, 62, is a seasoned investor Trump has called “brilliant,” positioning him as a key player in shaping U.S. economic policy amid rising debt and fiscal challenges.
Bessent was selected over contenders like former Federal Reserve Governor Kevin Warsh and private equity executive Marc Rowan. Trump praised Bessent’s career as a symbol of the American Dream, highlighting his alignment with Trump’s economic goals, including tariffs, deregulation, manufacturing revival, and energy independence. “Scott will support my policies to drive U.S. competitiveness and end unfair trade imbalances,” Trump stated.
Key Square Group launched in 2015 with $4.5 billion, including $2 billion from George Soros, for whom Bessent previously worked. The fund gained 13% in 2016, capitalizing on Brexit’s fallout and a post-Trump election rally. However, subsequent performance faltered, with assets under management dropping from a 2017 peak of $5.1 billion to $577 million by 2023. The firm has since diversified into advisory services and investment idea generation, maintaining overall double-digit growth since inception.
As Treasury Secretary, Bessent will spearhead Trump’s economic agenda, addressing a $36 trillion national debt, $2 trillion annual deficit, and escalating debt service costs. He will also oversee financial institutions and policies to enhance U.S. competitiveness, succeeding Janet Yellen as the nation’s financial steward.