U.S. Energy Information Administration reports

Markets Rally as Trump Picks Openly Gay Scott Bessent for Treasury Secretary, Unveils 3-3-3 Plan

Nov 25, 2024, 06:22 AM

President-elect Donald Trump has nominated hedge fund manager Scott Bessent as the next U.S. Treasury Secretary, a move that has been positively received by Wall Street and global markets. Bessent, who served as Chief Investment Officer at George Soros Fund Management from 2011 to 2015 and was involved in the famous 1992 bet against the British pound, is expected to pursue a pro-growth economic agenda while attempting to rein in the budget deficit. His proposed "3-3-3 rule" aims for 3% GDP growth, reducing the budget deficit to 3% of GDP by 2028, and increasing U.S. oil production by 3 million barrels per day. Bessent advocates for a weaker dollar and increased oil production to drive U.S. and global growth, stating, "A weak dollar and plentiful, cheap energy could power a boom." He is expected to phase tariffs, which may ease trade tensions with key partners such as China. His nomination is seen as a sign that the incoming administration may adopt a more moderate approach to fiscal and trade policies. Markets reacted favorably to the nomination, with U.S. stock futures reaching record highs, bond yields falling to two-week lows, and the dollar weakening. Investors anticipate that Bessent's appointment will ease concerns over aggressive tariff implementations and support economic growth. Charles Gasparino, a Fox commentator, said, "If you believe in the MAGA agenda, Scott Bessent is the best guy for that." Monica Crowley, former Assistant Secretary of the Treasury, added, "He's fully supportive of President Trump's pro-growth economic agenda, as well as his tariff and trade agenda." Bessent's appointment is also historic, as he would be the first openly gay individual to serve as Treasury Secretary. He has expressed pro-cryptocurrency sentiments, stating, "The crypto economy is here to stay," and has been praised by industry leaders; Ripple CEO Brad Garlinghouse called him "a perfect pick." Bessent has been critical of central banking since the 2008 financial crisis, arguing that "central bankers have effectively become central planners." His nomination is viewed as a move that may prioritize economic growth while attempting to rein in the budget deficit.