Donald Trump picks hedge fund manager Scott Bessent as Treasury Secretary

President-elect Donald Trump has signaled his intention to nominate hedge fund manager 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 the Treasury Department, Bessent, 62, will be both America’s fiscal watchdog as well as a key official in helping Trump implement his ambitious economic agenda. Both a Wall Street heavyweight and a proponent of many of the president-elect’s economic goals, he would come into office at a critical time when the United States is struggling with a growing economy alongside lingering debt and deficit problems.

Like Trump, Bessent favors gradual tariffs and deregulation to squeeze American business and control inflation. In addition, Bessent has advocated a revival in manufacturing as well as energy independence.

“If you want 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 speak candidly about the matter. “There aren’t many people who know the market better than Bessent does.”

The potential nominee also has deep philanthropic ties through Yale University, along with Rockefeller University and the Classical American Homes Preservation Trust.

One hurdle Bessent must overcome is his past association with billionaire investor and global gadfly George Soros. Bessent served as chief investment officer of Soros’s foundation.

CNBC has reached out to Trump’s transition team for comment.

Trump’s apparent decision to appoint Bessent to the key position follows a week of intense speculation about who would win. Over the past 24 hours, the Wall Street Journal issued a report suggesting that Warsh could get the job and 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 tenure expires.

Putting Bessent in the Treasury job could then clear the way for Warsh to eventually take over at the central bank, although he is also believed to be a candidate to lead the National Economic Council.