President Trump’s Friday night announcement of Scott Bessent as his pick for Treasury Secretary sent ripples through Wall Street on Monday. Interest rates fell as markets welcomed the appointment, signaling optimism about fiscal discipline and growth under his leadership.
- The yield on the 10-year treasury fell to 4.27% to close out Monday, down 13 basis points and the lowest level since October 30th.
Why it matters: Bessent, founder of Key Square Group and a former protégé of Democratic donor George Soros, is a rare figure with bipartisan appeal. His pragmatic economic philosophy appears to have reassured Wall Street, which has been increasingly alarmed by out-of-control federal spending.
3-3-3: Bessent has reportedly advised Trump to pursue a “3-3-3” economic strategy inspired by Japan’s late Prime Minister Shinzo Abe:
- Cut the budget deficit to 3% of GDP by 2028.
- Spur GDP growth to 3% through deregulation.
- Boost energy production by 3 million barrels of oil or its equivalent per day.
The big picture: Many Wall Street luminaries have been concerned by Washington’s failure to address rising debt. Bessent’s nomination, paired with his past remarks on fiscal responsibility, signals a potential shift toward reining in spending and stabilizing the economy.
Bottom Line: Scott Bessent’s nomination has offered a glimmer of hope for fiscal stability, but the road ahead requires navigating deep political divides to turn optimism into action.
