The No. 1 Reason Your Money Cares About Trump’s Pick for Head of Treasury
Written by
Heather Taylor
Edited by
Gary Dudak
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On Nov. 22, President-elect Donald Trump released a statement on Truth Social nominating hedge fund manager Scott Bessent as the Secretary of the Treasury Department. The statement reads that Bessent will help Trump “usher in a new Golden Age for the United States” and maintain the dollar as “the Reserve Currency of the World.”
While the reception to Bessent as Treasury secretary nominee has been mostly positive from Wall Street and business executives, including Jamie Dimon, CEO of JPMorgan Chase, there’s still the question of what the nomination means for Americans and their personal finances.
GOBankingRates spoke to Mark Malek, CIO at Siebert, and Julia Hermann, global market strategist at New York Life Investments, for their insight into why Trump’s choice for secretary of Treasury matters for your money.
‘Broad and Direct Implications’ for Americans’ Finances
Malek recommends looking at Bessent’s history. Most notably, Bessent worked under George Soros when he shorted the British pound sterling, and Bessent later founded his own hedge fund, which was seeded by Soros. Bessent’s fund has a strategic focus in global macro investing; because of this, Malek said it’s reasonable to assume Trump will employ his Treasury secretary’s experience in global economic policy.
While many business leaders see Bessent as the safe choice for the Treasury, Malek said this nominee might not be a friend to most Americans. Malek said the national debt is expected to expand significantly and will directly impact American finances.
“The widening of the budget deficit and national debt is one of the key drivers of the recent rise in longer-maturity yields, which have a direct impact on consumer finance, specifically home mortgages, car loans and student loans,” Malek said. “The Treasury secretary is responsible for debt issuance, so Treasury policy can have an influence on borrowing costs and household finances.”
Additionally, if Trump imposes stiff tariffs on trade partners, Malek said, most experts agree it would contribute to inflation and cause a drag on economic growth.
“Ultimately, the choice of Treasury secretary will have broad and direct implications for Americans’ finances,” Malek said. “Whether it’s through managing national debt, advocating tax policies, influencing trade deals or being a public face that boosts market confidence, Bessent’s actions could ripple through every household’s financial situation.”
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It’s Time To Speak With a Financial Professional
Do not let your emotions make any sudden financial moves regarding Bessent’s nomination. Rather, Malek recommends you keep an eye on how this key appointment impacts the policies that shape your finances.
Hermann said uncertainty has manifested as rising Treasury rates, mortgage rates and inflation expectations. Key consumer pain points, such as housing affordability and inflated price levels, are unlikely to resolve in the near term in this environment.
“This is just one reason why staying invested can be so important: Higher interest rates can make daily life more expensive but can also enhance the income generation potential of portfolios,” Hermann said.
She recommends that families use this time to speak with a financial professional and check in with their financial goals.
“Market noise can make investors feel they must react by changing their allocations or taking risk off the table. But diversified portfolios are constructed to weather instances of market turbulence and policy uncertainty.”
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