Trump’s cautious choice for Treasury indicates that he does not want to upset Wall Street.

Trump’s cautious choice

Trump’s cautious choice for Treasury indicates that he does not want to upset Wall Street.

Choice of Treasury secretary by President-elect Donald Trump contrasts sharply with some of his more contentious and dubious Cabinet selections to date.

The industry that Scott Bessent will be in charge of, Wall Street, will not be alarmed.

The position of Treasury secretary requires a serious individual who can handle the demands of the global financial markets and meet deadlines. Trump’s cautious choice for Treasury secretary is essentially the economy’s quarterback.

An extreme choice may have alarmed investors and increased the danger of Trump’s already intricate economic plan.

The choice had no effect on Wall Street. It was praised by some.

Judge Glock, a senior fellow at the Manhattan Institute. Stated that many observers regarded Scott Bessent as one of the most reputable and capable candidates. He has remained connected to both Trump supporters and conventional corporate and banking organizations.”

To put it another way, Trump did not appoint Wall Street’s Matt Gaetz or Robert F. Kennedy, Jr. to lead Treasury.

That does not imply that Bessent will oppose Trump’s cautious choice for proposals. Which include widespread tax cuts, higher and universal tariffs, and the vast deportation of undocumented immigrants. Bessent, a relatively recent MAGA convert. Was the chief investment officer of Soros Fund Management before founding the hedge fund Key Square. He authored an opinion piece supporting Trump’s policy for Fox News last week.

Bessent, however, would act as a firm hand to steer the economy, according to Glock.

“Bessent has focused on the usefulness of tariffs as a tool to encourage better deals with trading partners. Which has a long and bipartisan history. Glock said, referring to the topic that most drastically separates Trump from traditional business leaders: tariffs.

Maintaining Wall Street’s composure and confidence in the face of market or economic upheaval is one of the. Treasury secretary’s responsibilities. To put it another way: Stop a blip from turning into a panic. For this reason, before he finally gained the position, Bessent was considered the front-runner.

Elon Musk and other members of Trump’s inner circle were openly supporting a disruptor for the position. Howard Lutnick, the CEO of Cantor Fitzgerald. Who Musk claimed “would genuinely execute change” in contrast to Bessent, who would do business as usual.

In the end, Lutnick was chosen to be the secretary of commerce. A significant but ultimately less crucial position for making or breaking business decisions.

One of the main characteristics of a successful Treasury secretary is a calm manner. Which probably played a role in Trump’s decision to choose Bessent.

Isaac Boltansky, director of policy research at BTIG, stated. I do not think there is a major difference in tariff policy results between Bessent and Lutnick.

However, when the future Treasury secretary is interacting with the public. Politicians, and foreign officials, temperamental and experience distinctions will be important.”

Bessent’s selection demonstrates that there are still certain restrictions on Trump. Particularly with regard to Wall Street and handling the nation’s finances.

In an X post this week, billionaire hedge fund manager. Kyle Bass claimed that Scott is the best person he has ever dealt with when it comes to people. Markets, economics, and geopolitics.

Markets as barriers

Trump was fixated on market fluctuations during his first ters. Seeing the Dow Jones Industrial Average as a live indicator of his success.

In stark contrast to the laissez-faire attitude his predecessors had toward the market. Trump frequently tweeted out even the most unremarkable market accomplishments.

Bessent will therefore be tasked with attempting to implement. Laws that further the goals of the president-elect while maintaining the market boom.

That might not be simple: Markets fell several times during Trump’s first term trade war with China. At least partly because of concerns about his trade policies.

For example, concerns about the US-China trade war caused market chaos in December 2018. According to individuals who spoke to CNN at the time. Trump was eager to make a deal with Chinese President Xi Jinping during a crucial summit in Argentina because of the market turmoil.

Trump voiced fear about stock market declines and even expressed concern that the losses may harm his political reputation should markets failed to recover.

Given that Trump has pledged to slap 60% tariffs on China, a major trading partner of the US and a source of parts and supplies for US businesses. It is simple to imagine how a similar scenario would unfold in 2025.

Trump’s tariffs on China and his plans to impose 10%–20% general taxes on all US imports are expected to cause inflation, according to economists.

If CEOs and investors begin to object to Trump’s proposals to deport millions of undocumented immigrants, a move that could help lower inflation, a similar scenario might unfold.

A decision by Trump to remove Federal Reserve Chair Jerome Powell, with whom he has had a complex and occasionally tense relationship, could likewise have a very bad impact on investors. The Treasury secretary has tight ties to the White House and the central bank.