Financial encyclopedia

Trump decided to nominate Scott Bessent, the founder of Key Square Group, as the US Treasury Secretary, as the person in his cabinet ranking second only to the Secretary of State. His background and policy orientation reveal important clues about the future direction of American economy.

Scott Bessent, a top investor on Wall Street. He is famous for his macro-investment ability. He joined Soros Fund Management Company in his early years and participated in the world-famous "attack on the pound" action. This operation made George Soros make a big profit of $1 billion, and also established Besant's position in the financial world. Subsequently, as the investment chief of Soros Fund, he accurately bet on the depreciation of the yen, which once again proved his keen insight into the global market.

Besant's economic policy is regarded as a continuation of Trump's "America first" strategy, which has the following core characteristics:

Support trade protectionism: encourage taxation on imported goods, aiming at reviving American manufacturing.

Promote energy independence: It is planned to substantially increase oil production, reduce external energy dependence and enhance domestic energy competitiveness.

Tax system and regulatory reform: advocate simplifying the tax system, reducing the tax burden, and relaxing the supervision of the financial industry to stimulate bank lending and enterprise investment.

Emphasis on fiscal discipline: "3-3-3 policy" will become its administrative goal, that is, reducing the fiscal deficit to 3% of GDP, achieving an annual economic growth of 3%, and increasing the daily oil production by 3 million barrels.

In particular, he advocated reducing the fiscal deficit, promoting tax reform and strengthening financial deregulation to create more possibilities for economic growth. It remains to be seen whether Besant's administration can deal with the US debt problem and promote economic growth. For investors, paying attention to his policy direction is the key to formulating strategies.