Why CEOs are cheering Donald Trump’s pick for Treasury Secretary

Tthe announcement that President-elect Donald Trump’s long-awaited pick for Treasury secretary will be hedge fund manager Scott Bessent is being welcomed by business leaders and markets, who are confident that Bessent finally came out on top after a selection process and jockeying of top candidates.

In fact, I heard from several CEOs who had been on edge over the past few weeks as Trump’s search for Treasury secretary remained unfinished, raising various concerns about other candidates. Bessent, a global macro investor, was far from the only candidate that CEOs viewed as qualified and competent and able to work constructively with Trump. Like me told The Washington Post“Bessent has the support of everyone on Wall Street.”

Bessent has spent much of his career avoiding the limelight. Still, he has a reputation as a seasoned investor and savvy businessman and entrepreneur with decades of expertise in navigating macro markets. The list of Bessent’s supporters, mentors and business partners reads like a who’s who of Wall Street across institutions and political parties.

After starting on Wall Street as an intern with legendary investor Jim Rogers, Bessent worked at Brown Brothers Harriman before joining Jim Chanos, the short seller who correctly predicted the demise of Enron, Wirecard and other corporate disasters. Bessent then became a partner of George Soros at Soros Fund Management, where, along with Stanley Druckenmiller, he was a driving force behind perhaps Soros’ most famous trade, his 1992 shorting of the British pound, which won Soros, Bessent and their team over $1 billion. surplus.

About half of the $4 billion capital behind Bessent’s own company, Key Square, came from Soros investments. If confirmed by the Senate, Bessent would be the first openly gay Treasury Secretary in US history. He is a graduate of Yale and a generous supporter of the university.

The business community expects Bessent to reach out and work closely with business leaders, as well as policymakers from both sides of the aisle, to create economic growth and usher in the “golden age” of American economic opportunity that Trump touts. Unlike some of Trump’s other cabinet picks, Bessent is seen as a problem-solver whose support bridges ideological and sectoral divides. Bessent is a longtime Republican and loyal supporter of Trump, but he has also given generously to Democratic presidential candidates, including Al Gore and Barack Obama. He was backed in his bid for Treasury Secretary by figures as diverse as former Trump National Economic Council and Fox Business Channel anchor Larry Kudlow, former Trump adviser Steve Bannon, JPMorgan CEO Jamie Dimon, Evercore Senior Chairman Roger Altman and Hayman Capital founder Kyle Bass.

Bessent’s approach should help when it comes to key issues, such as tariffs, where business leaders are most concerned about Trump’s economic policies. While Bessent has expressed strong support for tariffs, so have many CEOs – as long as the tariffs are targeted, selective and carefully executed. Bessent dismisses the inflationary effect that worries most economists about tariffs and the likelihood of punitive retaliatory measures from trading partners that create barriers to US exports, which many CEOs fear, as he believes Trump’s plan is simply to threaten those measures as negotiating tools .

Of course, Bessent will have his work cut out for him in striking a balance between driving US economic growth and satisfying Trump’s tariff whims, but business is eager to engage as partners in charting a constructive path forward. Trump’s Trump’s selection of Bessent increases the chances of that happening.

Bessent’s nomination shows he was able to hold his own against powerful opponents in the Trump camp. Economists and business leaders will have differences in his decisions, but will respect his decision-making style. Bessent’s track record of commitment provides genuine reason for optimism for the growth of the US economy.