Meet Scott Bessent

The actions of Treasury Secretary Scott Bessent will be key to how the financial markets react to Trump 2.0’s economic agenda. Today, Eric shares insights into Bessent’s beliefs and proposals, which may have overly concerned investors recently. Bessent would take a gradual approach to lowering the budget deficit and the dollar, mindful not to stir up market volatility. The dollar’s global dominance is not at risk, nor is the Fed’s independence. … Investors can also relax about the Fed’s decision to slow its balance-sheet paring. It doesn’t represent monetary easing or the end of QT. It’s just a practical measure to lift pressure on reserve balances and should barely affect Treasury yields.