Scott Bessent Emerges as Treasury Secretary Contender

Speculation around the next U.S. Treasury Secretary suggests that Donald Trump favors candidates with Wall Street experience, with Scott Bessent emerging as a leading contender after John Paulson withdrew from consideration. Bessent, founder of Key Square Group and a significant Trump supporter, has been praised for his financial acumen and loyalty to the President-elect. Citigroup's CEO Jane Fraser noted a surge in merger and acquisition activity as clients prepare to act under a Trump administration, which is expected to ease regulations. Additionally, Howard Lutnick, CEO of Cantor Fitzgerald, is also viewed as a strong candidate due to his innovative leadership and close ties to Trump. Economic challenges, including high core inflation and a large deficit, will require the new Treasury Secretary to possess a deep understanding of finance and trade. James Grant emphasized that the ideal candidate should also consider the historical context of American currency management, potentially advocating for a return to a convertible currency system.