President-elect “Donald Trump” announced his nominee for the new Treasury Secretary position, which is economic advisor to his campaign and billionaire businessman “Scott Pisent,” born in 1962 in South Carolina. Pisent holds economic views that support Trump’s ideas and economic agenda. Trump stated in his announcement: “Scott has always been a strong advocate for the (America First) agenda. On the eve of the 250th anniversary of the founding of our great country, he will help me usher in a new golden age for the United States as we work to enhance our position as the leading economy in the world, a hub for innovation and entrepreneurship, and a destination for capital. Without a doubt, the U.S. dollar will remain the world’s reserve currency.”
The Treasury Secretary position is highly significant in the U.S. administration and is considered vital in controlling U.S. economic conditions. The Treasury Secretary is close to the President and serves as the primary advisor on economic and financial matters and will be responsible for enhancing Washington’s economic standing under Trump’s administration, possibly even restructuring the global economic system, and managing relations with the Federal Reserve.
Driving Factors
President-elect “Donald Trump” has been keen to select individuals close to him. Pisent’s longstanding proximity to the Trump family was a factor in his selection as Treasury Secretary, but it is not the only reason. Here are some notable reasons:
Success in Hedge Fund Management: Pisent has experience in hedge fund management, aiming to achieve high returns while minimizing risks. He previously managed the hedge fund created by “George Soros,” known as the “Soros Fund,” which earned billions of dollars. He also founded a hedge fund called “K Square Capital Management,” achieving revenues of up to a billion dollars during his time in Japan. His success is attributed to his economic and geopolitical analysis skills, which aid in investment decision-making, relying on studying historical economic cases; he holds a degree in economic history from Yale University.
Trump’s Desire to Appeal to the LGBTQ+ Community: Although this point may not hold much weight with Trump, known for his opposition to homosexuality, and may not have been a factor in choosing Pisent, Pisent is a member of the LGBTQ+ community. If approved by the Senate after his confirmation hearings, he would be the first Treasury Secretary from the LGBTQ+ community and the first openly gay cabinet member in a Republican administration, an event that would be welcomed by LGBTQ+ communities in the U.S., as well as Democrats who support diversity and inclusion in the U.S. administration.
Positive View of Trump: Pisent holds a positive view of the President-elect and promotes the idea of voter confidence in his management of the economy. This belief contributed to a bounce in U.S. stock markets that demonstrated investor confidence in Trump’s return and his ability to address weaknesses that Democrats have struggled with.
In this regard, Pisent wrote in an article published on November 10, 2024, in the Wall Street Journal, that the recent rise of the dollar in global financial markets and the stock market’s improvement following Trump’s victory reflect significant confidence that “Trump’s agenda will foster non-inflationary growth that will drive private investment,” along with his vigorous support for Trump’s “America First” slogan, especially concerning economic issues.
Extensive Business Relationships: Pisent has extensive relationships with business leaders on Wall Street and around the world, particularly in Europe. While not everyone on Wall Street agrees with Pisent, he has significant support from billionaire business leaders; after his nomination was announced, some described it as “great,” including billionaires “Daniel Loeb” and “Bill Ackman,” given the economic policies he intends to implement.
Expected Policies
Should Pisent take office, he will face several economic challenges, including a projected deficit of nearly 2trillionforthefiscalyear2025andnationaldebtexceeding2trillionforthefiscalyear2025andnationaldebtexceeding36 trillion. Pisent is expected to adopt a range of economic policies aligned with Trump’s agenda. He met with Trump at his resort in Florida immediately after being informed of his nomination for Treasury Secretary, alongside Vice President “JD Vance” and the new White House Chief of Staff “Suzy Wiles.” During this meeting, they discussed the broad outlines concerning the U.S. economy. Here are key expected policies from Pisent:
Implementing Further Tax Cuts: Pisent will carry out Trump’s agenda related to additional tax cuts for corporations and capital owners, a strategy initiated in 2017 when Trump first entered the White House. Democrats were unable to address this issue and compel businesses and capital owners to pay their fair share of taxes. The tax cuts will not only focus on corporations but will also extend to other areas, including tips.
Pursuing Trump’s Agenda Regarding China: President-elect Trump has vowed to impose more tariffs and fees on China as soon as he enters the White House, which Pisent, who shares similar views towards China, is expected to assist with. However, to avoid inflation spikes and price increases due to these tariffs, he believes they should be applied gradually, especially as China will retaliate, leading to significant losses for American business leaders with substantial investments in China. Therefore, he will need to negotiate with his Chinese counterpart to discuss these tariffs.
Encouraging U.S. Economic Growth: Pisent is expected to push for stronger U.S. economic growth and maintain the dollar as the “global reserve currency” by attempting to reduce federal spending. This entails increasing oversight of federal funds and institutions managing them, while also granting Americans more “social security benefits.” Pisent has outlined an economic plan aimed at reducing the budget deficit by 2028 to 3% of GDP, plus easing some regulatory constraints to boost GDP growth by 3%.
The plan also targets enhancing oil production by increasing daily production by 3 million barrels, which may entail reducing environmental regulations. Moreover, it advocates for the cancellation or reduction of subsidies related to electric vehicles and expresses a desire to sell U.S. government bonds worth trillions of dollars to support the budget.
Using Tariffs as Tools for Sanctions and Negotiations: Pisent supports the idea of utilizing tariffs as leverage in various negotiations, serving as a means to push countries toward implementing structural economic reforms. This idea aims to enhance Washington’s strategic interests and pressure countries to comply with U.S. demands to lower trade barriers. He believes that lowering tariffs can reward countries that adhere to U.S. wishes. In this context, Pisent has responded to critics of such policies, stating, “From a free market perspective, our policies may seem to contradict free trade; however, they are the way to achieve a more free and prosperous trading system in the long run.”
Central Role
Overall, the Senate’s approval of Pisent would be significant for Trump, given the importance of Pisent’s role in his administration. They share the same economic visions, particularly regarding the economic policies that will be used to pressure countries opposing Washington. Pisent’s extensive relationships in Asia and Europe could help bolster U.S. trade cooperation with various nations, but in a manner that serves Washington’s interests, potentially restructuring the international economic system. However, such policies may not benefit developing countries with inherently fragile economies.
