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Scott Bessent

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Scott Bessent
Bessent in 2024
79th United States Secretary of the Treasury
Incumbent
Assumed office
January 28, 2025
PresidentDonald Trump
DeputyDavid Lebryk (acting)
Michael Faulkender (nominee)
Preceded byJanet Yellen
Personal details
Born
Scott Kenneth Homer Bessent

(1962-08-21) August 21, 1962 (age 62)
Conway, South Carolina, U.S.
SpouseJohn Freeman
Children2
EducationYale University (BA)

Scott Kenneth Homer Bessent (/ˈbɛsənt/ BESS-ənt; born August 21, 1962) is an American investor and hedge fund manager who has served as the 79th United States secretary of the treasury since January 28, 2025.[1] He was a partner at Soros Fund Management and the founder of Key Square Group, a global macro investment firm.[2][3]

A major donor, fundraiser, and an economic advisor for the Donald Trump 2024 presidential campaign,[4] Bessent was nominated by Trump in November 2024 to be the United States secretary of the treasury and confirmed by the United States Senate to the office on January 27, 2025 by a vote of 68–29.[5][6]

He is the first openly gay treasury secretary and as fifth in the presidential line of succession, he is the highest-ranking openly LGBT person in American history.[7]

Early life and education

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Scott Kenneth Homer Bessent was born on August 21, 1962,[8] the oldest of three children of Barbara (née McLeod) and Homer Gaston Bessent Jr., a real estate agent.[9][10][11] He is of French Huguenot ancestry.[12]

Bessent earned a bachelor's degree in political science from Yale University in 1984.[10][13] While in college, he was an editor for The Yale Daily News, president of Wolf's Head Society, and treasurer for the class of 1984. He was chairman of the 1984 Yale Alumni Fund and assistant to the director of athletics.[10][14]

Career

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Bessent interned with investor Jim Rogers.[15] After graduation, he worked at Brown Brothers Harriman, Kynikos Associates (Jim Chanos), and others.[16] Bessent joined Soros Fund Management (SFM) in 1991 and was a partner there throughout the 1990s, eventually becoming head of the London office.[9][17][18][19][20] In 1992, Bessent was a leading member of the team whose bet on the Black Wednesday collapse of the British pound garnered over $1 billion for the firm. His bet against the Japanese yen in 2013 brought additional profit.[21][22]

After resigning from SFM in 2000, Bessent founded a $1 billion hedge fund.[9][23] The fund closed in 2005. Bessent has said he learned that he should not change his style or the construct of the firm because of investor preferences.[16] He was also a senior investment adviser to fund-of-funds Protégé Partners.[24][17] Bessent returned to Soros Fund Management and was chief investment officer from 2011 to 2015.[18][25] He left in 2015 to begin a new firm, Key Square Group.[19][20][2][3]

From 2006 to 2011, Bessent was an adjunct professor of economic history at Yale, where he taught three courses.[16][17]

Key Square Group

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Bessent founded Key Square Group in 2015 with Michael Germino, who had been the global head of capital markets at SFM.[26] Key Square uses geopolitics and economics to make macro investments.[21] Key Square received a $2 billion anchor investment from George Soros.[27] At the end of 2017, Key Square's assets were $5.1 billion.[27][28] Key Square's main fund returns increased by 13% in 2016 but lost money or broke even every year from 2017 to 2021 before making major gains in 2021, 2022 and 2023. The inconsistent track record scared away clients. Assets under management shrank from $5.1 billion in 2017 to $577 million in 2023 and the number of institutional investors declined from 180 to 20 over the same period.[29]

As part of a pre-arranged deal, in 2018 the firm returned the Soros capital as it took in other assets.[27] Its investors include Australia's sovereign wealth fund, Future Fund.[28]

Bessent announced that he would sever ties with the group as Treasury Secretary.[30]

Politics

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In 2000, Bessent hosted a fundraiser for Al Gore at his East Hampton, New York, home.[31] He has also donated to Hillary Clinton and Barack Obama.[32] In 2016, Bessent donated $1 million to Donald Trump's 2017 presidential inaugural committee.[33] In 2023 and 2024, Bessent donated more than $1 million to Donald Trump's 2024 campaign.[34]

In February 2024, Bessent hosted a fundraiser in Greenville, South Carolina, that raised nearly $7 million for Trump's 2024 campaign.[35] In April 2024, Bessent was a host for a Palm Beach, Florida, fundraiser that raised $50 million for the Trump campaign.[36] In July 2024, Bloomberg Businessweek reported that Bessent was a key economic adviser to Trump.[37] He proposed a three-point economic plan for Trump modeled on Japanese prime minister Shinzo Abe's "Three Arrows" economic policy.[38]

Secretary of the Treasury (2025–present)

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Nomination and confirmation

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On November 22, 2024, President-elect Trump announced his intention to nominate Bessent to serve as the United States secretary of the treasury in his second administration.[39][40][41] Bessent is the first openly gay secretary of the treasury, the second openly gay Senate-confirmed Cabinet secretary of an Executive Department after Pete Buttigieg, and the fifth openly gay person to serve in a Cabinet-level capacity, including interim officeholders and offices elevated to Cabinet-rank (after Demetrios Marantis, Richard Grenell, Buttigieg, and Vince Micone).[42][43]

Bessent appeared before the United States Senate Committee on Finance on January 16, 2025. During the hearing, Bessent defended plans to impose tariffs, supported tax cut extensions, and called for tougher economic policies on China and Russia.[44]

The United States Senate Committee on Finance advanced his nomination to the floor of the United States Senate in a 16–11 vote on January 21, 2025.[45] The Senate voted 68–29 to approve his nomination on January 27.[46][47]

Tenure

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Bessent was sworn in as the 79th Secretary of the Treasury by Supreme Court Justice Brett Kavanaugh on January 28, 2025.[48]

Social engagement

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Board memberships

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Bessent sits on the university council at Yale University.[14] Bessent and his sister donated the Bessent Library to Yale University.[49] Bessent has endowed three scholarships at Yale: one for students who are first-generation college matriculants, one for students from South Carolina, and one for students from the Bronx.[49]

Bessent chaired the investment committee and is a former member of the executive committee on the board of trustees of Rockefeller University.[50][51] Bessent formerly served on the board of God's Love We Deliver, an organization founded to deliver meals for homebound people with AIDS.[14][52] He is a trustee of Classical American Homes Preservation Trust (renamed the Richard Hampton Jenrette Foundation),[53] and a former board member of the Spoleto Festival USA in Charleston, South Carolina.[50][54] Bessent is also a member of the Council on Foreign Relations.[14][50]

Philanthropy

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Bessent opened two foundations in 2022, and created the McLeod Rehabilitation Center at the Shriners Hospital for Children in Greenville, South Carolina.[55][56] He also supports the Prince's Trust in London and the Harlem Children's Zone in New York City.[55] Bessent has supported restoration of the Nathaniel Russell House, a National Historic Landmark in Charleston, South Carolina.[57]

Views

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In article in fall 2022 commemorating former Japanese Prime Minister Shinzo Abe, Bessent wrote "President Trump’s most enduring achievement may have been to wake the United States and the world to the growing dangers of an ever-more-antagonistic China. In response, Abe’s greatest foreign policy achievement was taking this awakening and developing a multilateral solution for containment."[58]

Bessent has praised Trump's proposal to implement broad tariffs.[59] In a Fox News op-ed in November 2024, Bessent wrote that the "U.S. opened its markets to the world, but China's resulting economic growth has only cemented the hold of a despotic regime" and argued tariffs "are a means to finally stand up for Americans".[60] Regarding Trump's pledge to impose blanket 20% tariffs on all imports, Bessent argued that these "were maximalist positions that would probably be watered down in talks with trading partners".[22]

Shadow Fed chair proposal

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In a 2024 interview in Barron's weekly newspaper, Bessent proposed an alternative to any plan by President Trump to replace the Federal Reserve chairman Jerome Powell, which "was to nominate and seek Senate confirmation of Powell’s replacement well over a year before Powell’s term ends in May 2026". This has been called the "shadow Fed chair" because the confirmed candidate could present forecasts on future Fed decisions (forward guidance) after May 2026, while the present Fed chair is making decisions on present federal reserve policies. In essence, the plan would weaken the ability for the Fed chair to present forward guidance for the majority of 2026.[61]

As Bessent had described the plan on an October 11, 2024 broadcast on Bloomberg Radio:[62]

If you believe forward guidance is good, why can’t you give forward guidance on who the Fed chair is going to be. You could do one of two things: The current Fed chair could be reappointed, so you’ve created a path there. Or the new Fed chair nominee would give forward guidance beyond the current Fed chair’s sell-by date.

Ed Yardeni, president of Yardeni Research, said to Barron's that the idea would "create a lot of noise in the market", and that it creates a situation where investors would have to decide on which Fed chairman, the present one or the future one, had the greatest weight in terms of the decisions the FOMC, the Federal Open Market Committee, which is the main policy-setting committee of the Federal Reserve.[63] In response to the shadow Fed chair proposal, Senator Elizabeth Warren stated:[64]

I have been a fierce critic of Fed Chair Jerome Powell’s extreme interest rate hikes and lack of transparency, but I have never questioned that it is his job to make those decisions. It would be a serious error for the Trump administration to interfere with the Fed’s independence, as Mr. Bessent has suggested.

Personal life

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Pink Palace in Charleston

Bessent resides in Charleston, South Carolina,[65] and belongs to the Huguenot Church,[66] which his ancestors helped to build in 1680.[12] Bessent and his husband, former New York City prosecutor John Freeman, have two children, a son named Cole, and a daughter named Caroline.[67][68]

In 2016, Bessent purchased the historic John Ravenel House, owned by John Ravenel and inherited by his son St. Julien Ravenel and his wife Harriott Horry Ravenel. The building restoration project was awarded the Preservation Society of Charleston's Carolopolis Award in 2021. The mansion, known as the "Pink Palace", is located on Battery Street in Charleston.[55][69][70][71] In November 2024 the home was listed for $22,250,000.[72] As of December 10, 2024, the sale was under contract.[73]

Bessent's net worth was valued at least at US$521 million, according to Bessent's financial assets disclosure by the U.S. Office of Government Ethics dated December 28, 2024.[74][75]

References

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  1. ^ "Scott Bessent sworn in as 79th Secretary of the Department of Treasury" (Press release). United States Department of the Treasury. January 28, 2025. Retrieved January 28, 2025.
  2. ^ a b Foley, Stephen (August 4, 2015). "Scott Bessent quits Soros group to launch hedge fund". Financial Times. Retrieved November 12, 2024.
  3. ^ a b Foley, Stephen; Johnson, Miles; Childs, Mary (January 5, 2016). "Former George Soros executive raises $4.5bn for new fund". Financial Times. Retrieved November 12, 2024.
  4. ^ Restuccia, Andrew; Schwartz, Brian; Timiraos, Nick; Leary, Alex (November 22, 2024). "Trump Picks Scott Bessent as Treasury Secretary". The Wall Street Journal. Retrieved November 22, 2024.
  5. ^ "Senate confirms Scott Bessent as Trump's Treasury secretary". USA Today. January 27, 2025. Retrieved January 27, 2025.
  6. ^ "Senate confirms Scott Bessent as treasury secretary". CNN. January 27, 2025. Retrieved January 27, 2025.
  7. ^ Christopher Kane (November 24, 2024). "Trump nominates gay man for Treasury secretary". Washington Blade. Retrieved December 5, 2024.
  8. ^ "Scott H Bessent". Ancestry.com. Retrieved January 28, 2025.
  9. ^ a b c "Meet The Hedge Fund Superstar George Soros Just Hired To Take Over His $25 Billion Fund," Business Insider, September 19, 2011
  10. ^ a b c "Scott Bessent". The Sun News. July 8, 1984. p. 8D. Retrieved November 15, 2024 – via Newspapers.com.Open access icon
  11. ^ "Homer G. Bessent Jr". The Sun News. January 15, 2000. p. 2C. Retrieved November 15, 2024 – via Newspapers.com.Open access icon
  12. ^ a b nreynolds@postandcourier.com, Nick Reynolds (November 13, 2024). "Scott Bessent of Charleston is on Trump's shortlist for US Treasury secretary. Who is he?". Post and Courier.
  13. ^ Burton, Katherine (September 19, 2011). "Ex-Soros Trader Bessent Returns to $25 Billion Firm as CIO". Bloomberg.
  14. ^ a b c d "New Members Appointed to University Council". Yale Daily News. November 8, 2016.
  15. ^ "Scott Bessent". www.moneymazepodcast.com.
  16. ^ a b c “Life and Money Management,” Yale Alumni Magazine, Sept/Oct 2015
  17. ^ a b c Zuckerman, Gregory (September 20, 2011). "Soros Puts New Man at Helm". The Wall Street Journal. Retrieved November 12, 2024.
  18. ^ a b "Soros appoints new CIO to family office". Financial Times. September 19, 2011.
  19. ^ a b "Soros's Investment Chief to Depart". The Wall Street Journal. August 4, 2015.
  20. ^ a b "Soros' CIO to Start Own Hedge Fund with $2 Bln". Reuters. August 4, 2015.
  21. ^ a b Zuckerman, Gregory; Rudegeair, Peter (October 10, 2024). "The Ex-Soros Executive Who is Trump's New Obsession". The Wall Street Journal.
  22. ^ a b Rogers, Alex; Politi, James (October 13, 2024). "Trump would not weaken the dollar, says adviser Scott Bessent". Financial Times.
  23. ^ “Soros’ European Investment Head Bessent Leaves,” Bloomberg, June 8, 2000
  24. ^ ""Soros Aide Wins Kudos for Japan Bets,"". Wall Street Journal. February 14, 2013.
  25. ^ “George Soros’ Protégé Just Nailed One of the Biggest Hedge Fund Launches Ever,” Business Insider, January 5, 2016
  26. ^ "Ex-Soros's Bessent Raises $4.5 Billion For New Hedge Fund Firm". Bloomberg. January 5, 2016.
  27. ^ a b c "George Soros Gets Most of His $2 Billion Back from Bessent". Bloomberg. May 14, 2018.
  28. ^ a b "Volatility Offers Rich Pickings". The Australian. November 16, 2018.
  29. ^ "Exclusive: Fund manager Bessent scores double on Trump victory". Reuters. 2024.
  30. ^ Rappeport, Alan. "Scott Bessent, Trump's Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts". The New York Times. The New York Times. Retrieved January 17, 2025.
  31. ^ Dao, James; Seelye, Katherine Q. (August 6, 2000). "The 2000 Campaign: The Vice President; Gore's Theme-a-Day Tour Will Start With a No. 2 Pick". The New York Times.
  32. ^ Rappeport, Alan; Haberman, Maggie (November 22, 2024). "Trump Taps Investor Scott Bessent as Treasury Secretary". The New York Times.
  33. ^ Kight, Stef (April 19, 2017). "The big $$$ donors to Trump's Inaugural Committee". Axios.
  34. ^ "Individual Contributions - "Bessent, Scott"". Federal Election Commission. Retrieved November 23, 2024.
  35. ^ Kim, Soo Rin; Ibssa, Lalee (February 21, 2024). "Trump brings in more than $6.8 million from Greenville, South Carolina, fundraiser ahead of primary". ABC News.
  36. ^ "Trump Campaign Says $50.5 Million Haul Doubled Biden's Fundraiser". Newsweek. April 6, 2024.
  37. ^ Cook, Nancy; Green, Joshua; Parker, Mario (July 16, 2024). "Trump on Taxes. Tariffs, Jerome Powell and More". Bloomberg.
  38. ^ Reklaitis, Victor. "Possible Trump Pick for Treasury Lays Out 3-Point Economic Plan that Calls for Deregulation, Lower Deficit". MSN.
  39. ^ Franey, James (November 22, 2024). "Donald Trump to tap Scott Bessent for Treasury secretary, ending fierce battle for key job: sources". The New York Postaccess-date=November 23, 2024.
  40. ^ Restuccia, Andrew; Schwartz, Brian; Timiraos, Nick; Leary, Alex (November 22, 2024). "Trump Picks Scott Bessent as Treasury Secretary". The Wall Street Journal. Retrieved November 22, 2024.
  41. ^ Cheung, Brian; Sonnier, Olympia; Richards, Zoë (November 22, 2024). "Trump picks Scott Bessent to serve as treasury secretary". NBC News. Retrieved November 23, 2024.
  42. ^ "What to know about Scott Bessent, Trump's Treasury pick". Axios. November 22, 2024. Retrieved November 23, 2024.
  43. ^ Ring, Trudy (November 23, 2024). "Trump nominates investment manager Scott Bessent, a gay man, as Treasury secretary". The Advocate. Retrieved November 30, 2024.
  44. ^ Rappeport, Alan; Duehren, Andrew (January 16, 2025). "Trump Treasury Pick Scott Bessent Defends Plans to Cut Taxes and Raise Tariffs". The New York Times. ISSN 0362-4331. Retrieved January 17, 2025.
  45. ^ Stratford, Michael (January 21, 2025). "Senate panel advances Bessent nomination". Politico. Retrieved January 21, 2025.
  46. ^ "Senate confirms Scott Bessent as Trump's Treasury secretary". USA Today. January 27, 2025. Retrieved January 27, 2025.
  47. ^ "Senate confirms Scott Bessent as treasury secretary". CNN. January 27, 2025. Retrieved January 27, 2025.
  48. ^ "Scott Bessent sworn in as 79th Secretary of the Department of Treasury". United States Department of the Treasury. January 28, 2025. Retrieved January 28, 2025.
  49. ^ a b “Annual Report of Giving to Yale, 2000-2001," www.giving.yale.edu
  50. ^ a b c ""Three New Trustees Are Elected to the Board,"". Rockefeller University Press Release. March 3, 2016.
  51. ^ Ackerman, Andrew. "Trump's treasury pick, Scott Bessent, to divest from assets". Washington Post. Retrieved January 17, 2025.
  52. ^ "Out 100 -- Money + Business: Scott Bessent", Out Magazine, January 2001.
  53. ^ "Team". Classical American Homes Preservation Trust. Retrieved November 25, 2024.
  54. ^ "Palatial Purchase Palmer Home B&B on East Battery, Known as the Pink Palace, Sells for $6.5M". Post and Courier. June 21, 2016.
  55. ^ a b c McDermott, John (July 31, 2022). "SC Hedge Fund Investor Looks to Spread the Word About math and Financial Literacy". Post and Courier.
  56. ^ "Barbara McLeod Bessent". Post and Courier.
  57. ^ Murray, Ashley (November 23, 2024). "Hedge fund chief and tariff fan Scott Bessent to lead Treasury under Trump • SC Daily Gazette". SC Daily Gazette. Retrieved November 25, 2024.
  58. ^ "Bessent: Strong dollar, tariffs can wield US power on world stage | Responsible Statecraft". responsiblestatecraft.org. Retrieved January 7, 2025.
  59. ^ Saul, Derek (November 22, 2024). "What To Know About Scott Bessent: Trump's Pro-Tariff Treasury Pick". Forbes.
  60. ^ Truitt, Jack Stone (November 23, 2024). "Trump picks pro-tariff billionaire Scott Bessent for treasury secretary". Nikkei Asia. Retrieved January 7, 2025.
  61. ^ Peterson, Matt. "Trump Shadow Fed Chair: Inside the Plan to Sideline Powell". barrons. Retrieved January 20, 2025.
  62. ^ "Trump's Treasury Pick Wants Shadow Fed Chair, Maybe Weak Dollar". Bloomberg.com. November 23, 2024. Retrieved January 21, 2025.
  63. ^ "Trump advisor proposes a shadow Fed chair, but Wall Street veteran Ed Yardeni thinks it's a recipe for disaster".
  64. ^ "Elizabeth Warren Warns Trump Nominee: Hands Off The Fed". HuffPost. November 25, 2024. Retrieved January 20, 2025.
  65. ^ McDermott, John (July 31, 2022). "SC hedge fund investor looks to spread the word about math and financial literacy". Post and Courier.
  66. ^ "Trump reassures Wall Street by appointing billionaire financier Scott Bessent to Treasury". November 23, 2024 – via Le Monde.
  67. ^ Zuckerman, Gregory; Rudegeair, Peter (October 10, 2024). "The Ex-Soros Executive Who is Trump's New Obsession". The Wall Street Journal.
  68. ^ Parnaby, Laura (November 25, 2024). "Who is Scott Bessent's husband? Meet Trump's Treasury pick's partner". Mail Online. Retrieved January 29, 2025.
  69. ^ Hogan, Laura (February 3, 2022). "Carolopolis Awards Include Historic Homes, Visitor Center, Brick House Ruins". Post and Courier.
  70. ^ Wise, Warren L. (June 21, 2016). "Palatial Purchase Palme Home B&B on East Battery, Known as the Pink Palace, Sells for $6.5 M". Post and Courier.
  71. ^ Riddle, Lyn (November 15, 2024). "SC historic John Ravenel house on High Battery in Charleston is for sale for $22.25M". The State.
  72. ^ Griffis, Teri. "Famous pink mansion on Charleston's Battery hits market for $22.25M". The Post and Courier. Retrieved January 17, 2025.
  73. ^ Griffis, Teri. "Charleston's historic pink mansion owned by Trump nominee is under contract". The Post and Courier. Retrieved January 17, 2025.
  74. ^ "Trump's pick for Treasury secretary discloses assets worth at least $521 million, including a home in the Bahamas and S&P 500 ETFs". Fortune. Retrieved January 17, 2025.
  75. ^ "Scott Bessent's OGE Form 278e" (PDF). HCL Domino. Retrieved January 18, 2025.

Further reading

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[edit]
Political offices
Preceded by United States Secretary of the Treasury
2025–present 		Incumbent
Order of precedence
Preceded byas Retired Associate Justice of the Supreme Court Order of precedence of the United States
as Secretary of the Treasury 		Succeeded byas Secretary of Defense
U.S. presidential line of succession
Preceded byas Secretary of State Fifth in line
as Secretary of the Treasury 		Succeeded byas Secretary of Defense
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