Scott Bessent: Trump’s pick for treasury secretary is 1st openly gay to hold post

Donald Trump has tapped Scott Bessent, a prominent hedge fund manager known for his support of deficit reduction and deregulation and a former major donor to the Democrats, to serve as the next Treasury Secretary. If confirmed by the Senate, Bessent will be the first openly gay cabinet member in a Republican administration.

Bessent, 62, will be the highest-ranking US economic official, responsible for maintaining the plumbing of the world’s largest economy.

The billionaire from South Carolina is a former Democratic supporter. He later turned into a staunch Trump advocate and managed to win the trust of the Republican leader and his inner circle. He has also been a major fundraiser for Donald Trump.

FISCAL HAWK ADVOCATING TAX CUTS

Bessent supports extending provisions of the 2017 Tax Cuts and Jobs Act, signed by Donald Trump, a move projected to cost $6 trillion to $10 trillion over a decade to the US treasury.

To offset the fiscal impact, he calls for targeted spending reductions and adjustments in taxation.

He has frequently voiced concerns about the national debt, warning that tackling it is crucial for economic stability. In his opinion, debt and deficit reduction are central to bringing down consumer prices.

A FORMER SOROS AIDE

Bessent spent his career in finance, working for macro investment billionaire George Soros and noted short seller Jim Chanos. He had an influential role in Soros’ London investment operations, including his famous 1992 bet against the pound, which generated huge profits on ‘Black Wednesday’, when the pound was de-linked from European currencies.

Before aligning with Trump, Bessent was a donor to Democratic campaigns, including Al Gore’s 2000 presidential bid.

VIEWS ON TARIFFS

While mainstream economists often criticise tariffs as inefficient, Bessent sees them as a strategic tool for advancing US foreign policy. In an August interview with Bloomberg, he described tariffs as a “one-time price adjustment” and argued they are “not inherently inflationary.” He suggested using tariffs primarily against China to address currency manipulation and market overproduction.

In a Fox News op-ed, Bessent highlighted tariffs’ potential to achieve foreign policy objectives, from encouraging defence spending by allies to curbing trafficking of synthetic drug fentanyl and deterring military aggression. He recommends implementing them gradually.

LGBTQ REPRESENTATION

Bessent has been a strong advocate for gay rights and marriage equality.

Expressing his views on societal progress, he had said in a 2015 interview, “If you had told me in 1984, when we graduated, and people were dying of AIDS, that 30 years later I’d be legally married, and we would have two children via surrogacy, I wouldn’t have believed you”.

Bessent’s appointment comes at a critical time, with upcoming decisions on the debt ceiling and the expiration of the 2017 tax cuts. Bessent’s Wall Street experience and economic acumen are expected to play a pivotal role in shaping Trump’s economic policies and navigating the US through economic challenges.