The Albany Gazette - Scott Bessent a credible, safe pick for Treasury: experts

His selection came after competition for the top economic job spilled into the open last weekend, with the world's richest man Elon Musk throwing his support instead behind Trump's transition team co-chair Howard Lutnick.

Lutnick has since been named commerce secretary to lead Trump's tariff and trade agenda, and Bessent's nomination days later appears to be uncontroversial for now.

"Scott Bessent is a credible, mainstream pick for Treasury Secretary," said Jason Furman, a professor at Harvard University and former top White House economic adviser.

"I could see previous administrations as having chosen him," Furman, a former chair of the Council of Economic Advisers, told AFP.

But a key difference is that Bessent, 62, has had to adopt and defend views on topics like tariffs, in a way "he never would have in pursuit of the job for a previous Republican administration."

Tariffs are a key part of Trump's economic agenda, with the Republican president-elect vowing sweeping duties on allies and adversaries alike.

In an opinion piece published earlier this month on Fox News, Bessent defended the potential use of tariffs as a means to raise revenue for the government, protect strategic US industries and negotiate with trading partners.

He would be one of the first openly gay Cabinet officials if confirmed by the Senate, and the first at the helm of the Treasury Department.

- 'Adult in the room' -

Jens Nordvig, chief executive of data and analytics firm Exante Data who has worked with Bessent, drew a contrast between his demeanor and that of other Trump supporters.

While some Trump allies have a tendency towards "general sweeping statements," Bessent is an "analytical thinker, and he communicates accordingly," Nordvig told AFP.

He counts Bessent among his early clients.

"I would expect his messaging to be very focused, to get his key points across, without any unnecessary flamboyance or gusto," Nordvig added of the Wall Street veteran.

Calling Bessent a "safe choice," Brookings senior fellow in economic studies David Wessel told AFP: "He will be an adult in the room for the Trump administration."

Besides Bessent, others seen as top contenders for Treasury chief in recent days included former Federal Reserve governor Kevin Warsh, Apollo Global Management chief executive Marc Rowan, and Tennessee Senator Bill Hagerty.

- Market relief? -

It remains to be seen if Bessent will be a big influence "moderating some of the administration's more aggressive trade policy" or simply be a spokesman, Wessel said.

He does not have much experience in dealing with Congress either, and this would be important next year as the Trump administration works to raise the debt ceiling and effort a tax bill to deliver on his economic promises.

Bessent would also have to grapple with the country's debt burden, with debt borrowed at much lower interest rates previously and Trump's plans estimated to add trillions over time.

In an open letter published Saturday, Nordvig called for "thoughtful leadership" at the Treasury, saying a realistic approach to tax cuts and bond issuance was needed.

He also sounded a hopeful note, saying Bessent would work to reduce extreme risks for markets.

Krishna Guha, vice chairman of Evercore ISI, believes Bessent's nomination "will be well received by financial markets," given his deep understanding of markets and macro conditions.

Guha also warned of the risk of bond yields spiking and "pushing up mortgage rates and tanking the housing market, while also causing stocks to sell off."

In his past administration, Trump has viewed the stock market as a gauge of his success.

(C.Young--TAG)