Bessent studied political science but ended up working in finance after getting an internship with Jim Rogers, an investor and business partner of Soros’. In the 1990s, he worked as a partner at Soros Fund Management, gaining notoriety by betting against the British pound and earning the firm $US1 billion. After leaving to start his own fund, Bessent returned in 2011 to become Soros’ chief investment officer.
By then, Bessent had become a major donor to Republican candidates. According to a summary of his donations provided by his office, Bessent has given about $US15 million ($23 million) to political causes over the years, and all but $US300,000 has gone to Republicans. He gave $US1 million to Trump’s inauguration in 2016.
Scott Bessent has described tariffs as a useful tool for achieving foreign policy objectives.Credit: Bloomberg
Bessent was not part of Trump’s political orbit during his first campaign or term as president but has known the Trump family for decades and was close friends with the president-elect’s late brother, Robert.
This past spring, when many business leaders were hesitant to back Trump publicly as his legal troubles mounted, Bessent took a different view. He saw Trump as a “stock that goes up on bad news”, as he explained it to political analyst Mark Halperin last month, because every apparent setback appeared to strengthen his candidacy.
Concerned about the exploding national debt and the need to change the international trading system, Bessent set up a meeting with Trump and started exchanging economic policy ideas.
In recent months, Bessent has pitched a “3-3-3” plan that would aim for 3 per cent economic growth, reduce the budget deficit to 3 per cent of gross domestic product and increase domestic oil production by 3 million barrels per day. He also came up with an idea that would allow the president to essentially sideline the chair of the Federal Reserve, although he has backed down from that proposal in the face of opposition.
In some policy areas, Bessent has demonstrated an inclination to temper Trump’s economic impulses. He suggested that Trump’s idea of assigning a 15 per cent tax rate to companies that produce their products in the US could run afoul of international trade laws. And he has described Trump’s plan for blanket tariffs as a “maximalist” negotiating strategy, suggesting that tariffs should be phased in to give markets time to adjust.
Bessent was chosen after an internal tussle among Trump’s aides over the job. Howard Lutnick, Trump’s transition team co-chair and chief executive of Cantor Fitzgerald, made a late pitch to secure the Treasury secretary role for himself.
As Trump was deciding, sceptics of Bessent raised concerns about his ties to Soros and suggested he was not a true believer in tariffs. However, he won the public support of key advisers to Trump such as Larry Kudlow and Steve Bannon, who viewed him as the best choice.
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For Bessent, the challenge now will be remaining in Trump’s good graces as the president-elect once again looks to upend the international trading system and rewrite the tax code. Trump’s first Treasury secretary, Steven Mnuchin, often tried to dissuade Trump from imposing new tariffs and would attempt to calm markets as trade tensions flared. Still, he managed to maintain Trump’s trust.
Stanley Druckenmiller, a hedge fund investor who worked with Bessent at Soros Fund Management, said that although Bessent is soft-spoken, he can also be “tough and persuasive” and that he has the right temperament to work for a demanding boss such as Trump.
“If anybody can handle it, it’s Scott,” Druckenmiller said.
