Scott Bessent Mentioned as Next Treasury Secretary Candidate
Scott Bessent, founder of Key Square Group, dismissed concerns about a weaker dollar and reduced trade if former U.S. President Donald Trump, the Republican presidential candidate, is re-elected.
On the 13th (local time), in an interview with major foreign media, Bessent said, "Trump supports the U.S. dollar's status as the global reserve currency," and stated that the former president would not deliberately devalue the dollar. He added, "The value of the reserve currency can fluctuate according to the market, but with good economic policies, the dollar will naturally strengthen," predicting that the 'strong dollar' trend will continue under a second Trump administration.
Before founding Key Square Group and becoming independent, Scott Bessent served as Chief Investment Officer (CIO) at Soros Fund Management, owned by Wall Street billionaire George Soros. He currently serves as the chief economic advisor to the Trump campaign. Alongside hedge fund manager John Paulson, former U.S. Trade Representative (USTR) Robert Lighthizer, and JPMorgan Chairman Jamie Dimon, he is mentioned as a candidate for Treasury Secretary in a potential second Trump cabinet.
The reason why Trump’s economic strategist has appeared publicly like this is interpreted as a response to concerns about the economic and trade policies of a second Trump administration. Former President Trump has criticized countries like Japan and China for deliberately lowering their currency values to gain an advantage in trade with the U.S., and has promoted reviving manufacturing through dollar devaluation.
However, experts have been skeptical, saying that a weak dollar and Trump’s tariff promises cannot coexist. Trump’s tariff policies raise import prices, and if the Federal Reserve (Fed) maintains high interest rates accordingly, the strong dollar phase will continue. Additionally, various tax cut measures pushed by Trump, such as corporate and income tax reductions, could increase the fiscal deficit and government bond issuance, leading to prolonged high interest rates.
Bessent described Trump’s tariff promises as "a maximalist position assumed by Trump," but overall assessed that "Trump is ultimately a free trader." The bombshell tariff promises are merely cards to be used in negotiations with trade partners, and the regulatory intensity is expected to decrease during the negotiation process. He also added that if Trump is elected, he plans to appoint a new Fed chair but will not infringe on the Fed’s independence.
Regarding analyses that Trump’s economic policies would significantly expand the fiscal deficit more than Vice President Kamala Harris’s, Bessent criticized them as "based on terrible modeling," arguing that economic growth from tax cuts was not considered. Earlier, the bipartisan U.S. think tank, the Committee for a Responsible Federal Budget (CRFB), estimated that if Trump’s campaign promises are fulfilled, the federal deficit over the next 10 years would reach $7.5 trillion (about 1,117 trillion won), more than twice that of Vice President Harris’s $3.5 trillion.
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