USA President-elect Trump has announced that he will nominate Scott Bessent, the founder of the macro hedge fund Key Square Group, as the next US Treasury Secretary.

"Scott has long been a staunch advocate of the 'America First' agenda," Trump said in a statement on Friday. "He will help me usher in a new golden age for the USA."

Scott Bessent

Bessent, 62 years old, would become one of the wealthiest Treasury Secretaries in modern times if confirmed by the US Senate for Trump's nomination.

If appointed Treasury Secretary, Bessent will undoubtedly have to navigate the political jungle of Washington and apply Wall Street's expertise to address crises. He will be closely watched by investors and financial institutions who hope to see predictability and stability in economic policies.

Bessent has always been a supporter of adjusting USA exchange rate policies, but does not endorse an open strategy of devaluing the dollar. During his first presidential term, Trump criticized the appreciation of the dollar as unfavorable to American manufacturers, and even considered government intervention to manage the dollar.

Bessent acknowledges that while a weaker dollar is beneficial for certain sectors of the economy, some of Trump's proposals could drive up the dollar exchange rate.

He has also criticized the Biden administration's management of federal debt financing and discussed expanding the 'friendship offshoring' policy to establish a tiered system among trading partners.

In May 2026, there will be a change in the chairmanship of the Federal Reserve. Bessent, as the Treasury Secretary, will provide recommendations to Trump on who should succeed Powell. Earlier this year, he mentioned that a new chairman could be nominated before Powell's term is over, at which point the financial markets will focus on this 'shadow chairman' rather than Powell.

He has stated that the Fed reacted too slowly to the rise in inflation in 2021 and criticized the Fed's significant rate cut in September.