Wall Street Rallies Behind Trump’s Pick Scott Bessent, a Champion of Corporate Tax Cuts

The U.S. stock market experienced a significant boost on Monday morning following President-elect Donald Trump’s announcement that hedge fund manager Scott Bessent would be his nominee for treasury secretary. Wall Street leaders expressed their approval, calling Bessent a “reasonable” choice that might temper some of Trump’s more radical policies.

However, proponents of economic fairness argued that the positive reaction stems from expectations that Bessent will advocate for “trillions in tax cuts for the ultra-rich.”

Jeffrey Sonnenfeld, the founder and president of the Yale Chief Executive Institute, described Bessent in an interview with CNN as a “pragmatic” appointee. He noted that Bessent, who is an executive at the billionaire-led Key Square Group, favors “selective tariffs” and might reduce Trump’s proposal to implement broad tariffs up to 20% on imports—a move economists believe would increase costs for American consumers.

In a conversation with radio host Larry Kudlow, Bessent contended that tariffs “can’t be inflationary.”

David Kass, the executive director of the economic justice group Americans for Fair Taxation (ATF), emphasized that during Bessent’s confirmation hearings, the group will press for clear answers on whether Bessent plans to use tariffs as a financing mechanism for another Trump-endorsed plan: extending the 2017 tax cuts.

“With income inequality at an all-time high and Americans struggling under escalating living costs, we need to scrutinize why billionaire Scott Bessent supports reauthorizing the Trump tax bill, which primarily benefits the ultra-wealthy and large corporations,” stated Kass. He also questioned how Bessent intends to fund these extensive tax reductions, asking whether he will shift the financial burden onto middle and working-class Americans through broad reductions in essential government programs like Social Security and Medicare, or increase costs on everyday goods through tariffs.

The government oversight group Accountable.US pointed out that Bessent has defended Trump’s tariff strategy, which analysts believe would raise annual costs for average households by about $3,900, while also supporting the continuation of Trump’s tax policies that overwhelmingly favor the rich and corporations.

Tony Carrk, executive director of Accountable.US, criticized the choice, stating, “Despite all his rhetoric about supporting working-class Americans, President-elect Trump’s decision to appoint a billionaire hedge fund manager as the head of the Treasury shows he aims to perpetuate a system that benefits major corporations and the wealthy.” Carrk added, “If confirmed, Bessent’s first priority will be to promote trillions in additional tax reductions for the wealthy, effectively imposing a $3,900 tax hike on average American families.”

As the Dow Jones Industrial Average climbed by 500 points, Jay Timmons, CEO of the National Association of Manufacturers, told CNN that Bessent is expected to curb what he described as “out-of-control government spending” under President Joe Biden. With the Republican Party poised to control both congressional chambers and the White House in January, GOP leaders are likely to seek cuts in Medicare and Social Security, which they have long criticized as overly costly and inefficient.

“Wall Street might be relieved at Scott Bessent’s nomination, but working-class Americans see no relief on the horizon,” commented Sen. Elizabeth Warren (D-Mass.), soon to be the top Democrat on the Senate Banking Committee. She noted, “Mr. Bessent’s expertise is in helping wealthy investors increase their fortunes, not in reducing costs for families burdened by corporate greed.”

Previously, Bessent informed his Key Square Group clients that a second Trump administration would herald an “economic lollapalooza” for them, with lower taxes for affluent investors and a new era of deregulation.

The Republican mega-donor has suggested a “3-3-3” policy strategy to Trump, aiming to reduce the budget deficit by 3% by 2028, increase GDP growth by 3%, and encourage Big Oil to boost crude oil production by another 3 million barrels per day.

Bessent has also shown support for Trump’s favorable stance towards the cryptocurrency industry, which has invested over $110 million in federal election campaigns this year and spent a record $24.7 million on anti-regulatory lobbying.

Brad Garlinghouse, CEO of financial tech firm Ripple, expressed on Friday his expectation that Bessent would be “the most pro-innovation, pro-crypto treasury secretary we’ve ever seen.” However, critics have cautioned that the unregulated and highly speculative crypto sector offers little to ordinary working people.

“The U.S. doesn’t need a hedge fund executive at the helm of its economic policy, especially one who believes that tax reductions for the wealthy, rolling back public protections, and increasing oil drilling are the keys to strengthening the economy,” argued Robert Weissman, co-president of consumer advocacy group Public Citizen. “This nomination is yet another disastrous decision by Donald Trump, signaling plans for enormous handouts to the super-rich and cuts to regulatory safeguards that protect the welfare of the American public.”

Despite claims by some supporters that Bessent represents a more conventional choice than other potential nominees for treasury secretary, Carrk remarked that the nomination follows “the same old playbook, and it will yield the same results—an economy that benefits a select few, not everyone.”