Trump’s choice to lead the Treasury Department
Scott Bessent Sees a Coming ‘Global Economic Reordering.’
Scott Bessent spent the past 40 years studying economic history. Now, as Donald Trump’s choice to lead the Treasury Department, he has the chance to make his mark on it.
People who have worked with Bessent describe him as reserved and professorial. He once taught economic history at Yale University, his alma mater, and, as an investor, he would often research forgotten financial analogues to inform his views on current events.
“We are going to have to have some kind of a grand global economic reordering,” Bessent said at a June event.
“I’d like to be a part of it. I’ve studied this.”
Wall Street Journal 25 November 2024
Managing the US Treasury market and the nation’s fiscal trajectory will be a lot more daunting than markets seem to recognize.
It’s hard to overstate the importance of the market for US Treasury securities.
It provides a benchmark for the prices of stocks and bonds around the world and determines the cost of financing the US budget deficit.
To those ends, it must be deep and liquid — that is, able to handle large trading volumes without undue disruption or volatility.
Unfortunately, it remains vulnerable to turmoil.
US deficit spending has vastly increased the volume of Treasury securities outstanding, dwarfing the balance sheets of the financial institutions at the center of the market.
Meanwhile, authorities lack the proper tools to prevent dysfunction.
Markets’ exuberant response to his nomination certainly contrasts sharply with the difficulties he’ll encounter
Bill Dudley Bloomberg 26 november 2024
Tillbaka till Rolfs länktips 25 November 2024
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