Huge Relief, CEOs React as Trump Appoints Scott Bessent to Lead Treasury

Huge Relief, CEOs React as Trump Appoints Scott Bessent to Lead Treasury

Business Leaders Relieved as Trump Names Scott Bessent for Treasury Secretary

New York (CNN) — Business leaders are expressing relief after President-elect Donald Trump chose hedge fund executive Scott Bessent to lead the Department of Treasury, opting for a safe and pragmatic selection following more unconventional cabinet picks.

Bessent, a seasoned global investor with bipartisan ties, emerged victorious after internal debates over the key role. His appointment comes at a critical time, with the Treasury secretary expected to navigate immediate economic challenges and implement Trump’s economic agenda.

Bessent’s extensive experience, including collaborations with renowned investors like George Soros and Stanley Druckenmiller, has reassured both corporate leaders and financial markets. His bipartisan support and reputation for moderation stand in contrast to some of Trump’s more controversial campaign promises.

Market reactions were swift and positive. On Monday, the Dow surged nearly 500 points, while the S&P 500 and Nasdaq Composite climbed 0.75% and 0.8%, respectively. Treasury yields declined, and the dollar weakened, signaling investor confidence.

“There’s huge relief,” said Jeffrey Sonnenfeld, founder of the Yale Chief Executive Leadership Institute. “Bessent is reasonable and pragmatic.”

While Bessent supports strategic tariffs, he has cautioned against repeating past mistakes like the 1930 Smoot-Hawley tariffs, which exacerbated the Great Depression. Still, his influence over Trump’s economic decisions, including tariffs and immigration policies, remains uncertain.

Progressive leaders and economists voiced skepticism. Sen. Elizabeth Warren criticized Bessent’s background, arguing that his expertise benefits wealthy investors rather than working families. Meanwhile, economist Larry Summers warned that Trump’s economic plan, including expansive tariffs, could stoke inflation and harm key industries.

Despite these concerns, Bessent’s appointment has drawn bipartisan praise. Jay Timmons, CEO of the National Association of Manufacturers, called him an “outstanding choice,” highlighting his financial acumen and potential to advance Trump’s economic goals, including tax reform.

Bessent’s success as Treasury secretary will likely hinge on his ability to balance corporate priorities with the needs of Main Street, while navigating a politically charged economic landscape.