Bessent, Scott

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    Which Interest Rate Should You Care About?

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    The Fed’s short-term rates matter, but the main action now is in the 10-year Treasury market, which influences mortgages, credit cards and much more, our columnist says.Watch out for interest rates.Not the short-term rates controlled by the Federal Reserve. Barring an unforeseen financial crisis, they’re not going anywhere, especially not after the jump in inflation reported by the government on Wednesday.Instead, pay attention to the 10-year Treasury yield, which has been bouncing around since the election from about 4.8 to 4.2 percent. That’s not an unreasonable level over the last century or so.But it’s much higher than the 2.9 percent average of the last 20 years, according to FactSet data. At its upper range, that 10-year yield may be high enough to dampen the enthusiasm of many entrepreneurs and stock investors and to restrain the stock market and the economy.That’s a problem for the Trump administration. So the new Treasury secretary, Scott Bessent, has stated outright what is becoming an increasingly evident reality. “The president wants lower rates,” Mr. Bessent said in an interview with Fox Business. “He and I are focused on the 10-year Treasury.”Treasuries are the safe and steady core of many investment portfolios. They influence mortgages, credit cards, corporate debt and the exchange rate for the dollar. They are also the standard by which commercial, municipal and sovereign bonds around the world are priced.What’s moving those Treasury rates now is bond traders’ assessments of the economy — including the Trump administration’s on-again, off-again policies on tariffs, as well as its actions on immigration, taxes, spending and much more.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Argues That Courts Cannot Block Musk’s Team From Treasury Systems

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      Lawyers for the Trump administration argued late Sunday that a court order blocking Elon Musk’s aides from entering the Treasury Department’s payment and data systems impinged on the president’s absolute powers over the executive branch, which they argued the courts could not usurp.The filing by the administration came in response to a lawsuit filed Friday night by 19 attorneys general, led by New York’s Letitia James, who had won a temporary pause on Saturday. The lawsuit said the Trump administration’s policy of allowing appointees and “special government employees” access to these systems, which contain sensitive information such as bank details and social security numbers, was unlawful.Members of Mr. Musk’s so-called Department of Government Efficiency, which is not actually a department, have been combing through the databases to find expenditures to cut. The lawsuit says the initiative challenges the Constitution’s separation of powers, under which Congress determines government spending.A U.S. district judge in Manhattan, Paul A. Engelmayer, on Saturday ordered any such officials who had been granted access to the systems since Jan. 20 to “destroy any and all copies of material downloaded from the Treasury Department’s records and systems.”Judge Engelmayer said in an emergency order that the officials’ access heightened the risk of leaks and of the systems becoming more vulnerable than before to hacking. He set a hearing in the case for Friday.Federal lawyers defending Mr. Trump — as well as the Treasury secretary, Scott Bessent, and the Treasury Department — called the order “markedly overboard” and said the court should dismiss the injunction, or at least modify his order.They argued that the order violated the Constitution by ignoring the separation of powers and severing the executive branch’s right to appoint its own employees. The restriction, they wrote, “draws an impermissible and anti-constitutional distinction” between civil servants and political appointees working in the Treasury Department.The filing followed warning shots over the weekend. Vice President JD Vance declared that the courts and judges aren’t allowed “to control the executive’s legitimate power,” although American courts have long engaged in the practice of judicial review.On Saturday, Mr. Trump called the ruling by Judge Engelmayer a “disgrace” and said that “No judge should, frankly, be allowed to make that kind of a decision.”This is a developing story and will be updated. More

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      Trump Orders Treasury to Halt Minting New Pennies to Cut Waste

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      President Trump said on Sunday night that he had ordered the Treasury secretary to stop producing new pennies, a move that he said would help reduce unnecessary government spending.“Let’s rip the waste out of our great nations budget, even if it’s a penny at a time,” he said in a post on Truth Social. He characterized the production of pennies, which “literally cost us more than 2 cents” each, as wasteful.This is a developing story. Please check here for updates. More

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      Musk Team’s Treasury Access Raises Security Fears, Despite Judge’s Ordered Halt

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      A federal judge’s order that Elon Musk’s team temporarily cease boring into the Treasury Department’s payment systems raises a far larger question: whether what Elon Musk has labeled the Department of Government Efficiency is creating a major cyber and national security vulnerability.The activities of Mr. Musk’s government cost-cutting effort, U.S. District Judge Paul A. Engelmayer said in his order on Saturday, risk “the disclosure of sensitive and confidential information” and render the Treasury’s systems “more vulnerable than before to hacking.”It is a risk that cybersecurity experts have been sounding alarms over in the past 10 days, as Mr. Musk’s band of young coders demanded access to the Treasury’s innermost systems. That access was ultimately granted by Scott Bessent, the newly confirmed Treasury secretary.But other than vague assurances that the new arrivals at the Treasury’s door had proper clearances, there was no description of how their work would be secured — and plenty of reason to believe that it would make it easier for Chinese and Russian intelligence services to target the Treasury’s systems.That was the central argument made by 19 attorneys general as they sought a temporary restraining order to get Mr. Musk’s workers out of the Treasury systems. And Judge Engelmayer endorsed it on Saturday, limiting access to existing Treasury officials until a hearing next week in front of a different federal judge.The government has maintained that Mr. Musk’s team has been limited to reviewing “read-only” data in the Treasury Department’s systems, though the administration is now placing appointees in positions where they could do much more.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Are Trump’s Tariffs Inevitable?

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      World leaders and C.E.O.s are struggling to convince President-elect Donald Trump to shift his position on imposing new levies against America’s trade partners and its rivals.Advisers for Donald Trump are telling businesses to take the president-elect at his word on tariffs.Doug Mills/The New York TimesUnyielding on tariffs Investors appear largely unfazed by President-elect Donald Trump’s tough talk on tariffs, with the S&P 500 up more than 5 percent since Election Day.But world leaders and C.E.O.s are worried he could disrupt global trade and pummel profits — and feel they’re making little headway in warning him of the consequences.Companies have stepped up their lobbying to persuade Trump to go easy on tariffs, according to The Wall Street Journal. The president-elect warned last month that he would impose 25 percent levies on the country’s biggest trading partners, Canada and Mexico, if they didn’t tighten their borders and stem the flow of illegal migration to the U.S.In subsequent social media posts, he went after China and BRICS countries, too.Trump’s team is warning businesses to take him at his word on tariffs, The Journal reports. That suggests that Trump, who has called tariffs “the most beautiful word in the dictionary,” isn’t merely using tariff warnings as an opening salvo in trade negotiations.It also calls into question how much say Jamieson Greer, Scott Bessent, Howard Lutnick and Marco Rubio — Trump’s picks for trade representative, and to run the Treasury, Commerce and State departments — will have in shaping Trump’s trade policy if his mind is already made up.Trump conceded that he “can’t guarantee” tariffs won’t hit consumers hard. That’s a concern among economists and big companies such as Walmart and Costco, who fear that levies could lead to price rises. This earnings season, analysts have been peppering corporate leaders about how tariffs might affect their businesses.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Scott Bessent, Trump’s Pick for Treasury Secretary, Doesn’t Fit the President-Elect’s Loyalist Mold

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      A hedge-fund titan who worked for George Soros. A deep-rooted Southerner with a fondness for high-end real estate. A gay man, married with children. Who is Scott Bessent?A capitalist with a soft spot for royalty. A deep-rooted Southerner with a fondness for stylish New York locales. A gay man, married with children, who has embraced a Republican Party that has sometimes vilified elements, and individuals, of the L.G.B.T.Q. movement.Such are the crosscurrents coursing through the biography of Scott Bessent, President-elect Donald J. Trump’s pick for Treasury secretary. The appointment would give him vast power over the nation’s economic plans — and place him fifth in line for the presidency, potentially the highest governmental position ever held by a gay person.A hedge-fund titan with a formidable professional pedigree, Mr. Bessent, 62, has been a quiet presence in New York’s social scene since the 1990s, when he worked for George Soros, the liberal megadonor and financier, eventually managing tens of billions of dollars in assets.He counts among his friends a group of elegant socialites and women of the world, Capote-ian swans of a different era, including the president-elect’s former sister-in-law Blaine Trump, Princess Firyal of Jordan and Queen Camilla, whom he once hosted at his Hamptons home — and forced to smoke her cigarettes outside. He is friends, too, with King Charles III, who has regularly hosted him at Buckingham Palace. Mr. Bessent no longer has a home in New York City, and is instead schooling his two children, Charlotte and Cole, ages 11 and 15, in London with his husband, John Freeman, a former assistant district attorney in the Bronx, whom he married in 2011. The family also has homes in Charleston, S.C. — the state where Mr. Bessent was raised — and in Lyford Cay, a gated community in Nassau, the capital of the Bahamas, which advertises itself as “one of the Caribbean’s most elegant and exclusive enclaves.”But Mr. Bessent’s family history is also pocked with hardships, including two bankruptcies for his father — a decade apart, in 1969 and 1979 — and the 2022 death of his younger sister, Wyn Nicole Bessent, who had worked as a public defender and seemingly lived a simpler life far removed from her brother’s glittering existence.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariff Threat Roils Global Markets

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      The dollar gained and investors sold off stocks after the president-elect promised to levy new restrictions on the United States’ biggest trade partners. President-elect Donald Trump’s economic policy is already roiling global markets.Brendan McDermid/ReutersThe other Trump trade Investors and policymakers are getting a dose of Trumponomics déjà vu this morning.Global stocks are falling, and the dollar is climbing. The volatility comes after President-elect Donald Trump’s vow to impose tariffs on the United States’ biggest trading partners — Canada, China and Mexico — on Day 1 in office in an apparent effort to clamp down on the flow of cross-border drugs, like fentanyl, and migrants.The latest:Trump wants to impose 25 percent tariffs on Canada and Mexico “on ALL products coming into the United States,” he said on Truth Social. He also wants an “additional” 10 percent tariff on imports from China, which Trump blames for the fentanyl crisis, a charge that Beijing has repeatedly disputed.The Canadian dollar and Mexican peso fell sharply against the dollar. Europe, Japan and South Korea weren’t even mentioned in Trump’s announcement, but stocks have fallen there, too. That suggests rising fears that a new trade war could scramble global supply chains and dent profits.Automakers are some of the hardest hit stocks, with Volkswagen, Stellantis and Nissan, which run manufacturing operations in Mexico, all down.Today’s losses have reversed some of yesterday’s “Bessent bounce” rally. Investors were relieved after Trump picked Scott Bessent, the market-friendly hedge fund mogul, to run the Treasury Department.But the reverberations show that it’s Trump calling the shots. The president-elect has made no secret of his desire to use tariffs to further his America-first agenda, and he has yet to announce his pick to be U.S. Trade Representative. (Another tariff supporter, Robert Lighthizer, is in the running.)Trump’s latest threats may be just a negotiating tactic. That’s the belief of some Trump backers, including Bill Ackman, the billionaire financier. But they are a reminder of how Trump set off alarm bells across diplomatic channels and international markets during his first term often via social media posts. “Waking up to check the tweets for any policy announcements could become the norm,” Mohit Kumar, an economist at Jefferies, wrote in a note this morning.Prime Minister Justin Trudeau of Canada spoke to Trump about trade and border security after the president-elect’s announcement, The Times reported. China pushed back. “No one will win a trade war,” a spokesman for the Chinese Embassy in Washington said in a statement.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Markets Cheer Trump’s Treasury Pick, Scott Bessent

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      Investors seemed to signal their approval for Scott Bessent as a safe choice to implement the president-elect’s economic agenda.Stocks and bonds are gaining on Monday, as investors seem to cheer the pick of Scott Bessent to run the Treasury Department.Dominic Gwinn/Middle East Images/AFP via Getty ImagesA steady hand Stocks and bonds are rising on Monday, and the dollar is down. On the first trading day since Donald Trump chose the billionaire financier Scott Bessent as his pick for Treasury secretary, investors seem to be signaling they like the choice.The hedge fund mogul is seen as a steady hand to enact the president-elect’s economic vision — and, just as important, oversee the $28 trillion Treasuries market. “Investors prefer orthodoxy, predictability, and coherence from economic policy; there were fears that some of the candidates may not possess those attributes. Bessent does,” Paul Donovan, chief economist of UBS Global Wealth Management, wrote in a research note on Monday.The Key Square Group founder overcame serious opposition from some in Trump’s inner circle. Elon Musk derided Bessent as a “business-as-usual choice” and threw his weight behind Howard Lutnick, the C.E.O. of Cantor Fitzgerald. When Trump tapped Lutnick to lead the Commerce Department instead, Bessent was left to fight it out against the likes of Mark Rowan, the boss of Apollo Global Management, the private equity giant.Bessent won a “knife fight” to get the nod. On Wall Street, a document was circulated suggesting that his Key Square hedge fund had underperformed the booming markets. Bessent’s ascent is notable in that he doesn’t appear to have been on Trump’s radar during his first administration.His background as a former Democratic donor who worked with George Soros, a villain for the right, has also been scrutinized. (Interesting fact: Bessent furnished the progressive billionaire financier with key data that prompted Soros to make one of his most famous trades: shorting the British pound.) Some Trump backers, including Palmer Luckey, the defense tech entrepreneur, worried about Bessent’s commitment to the president-elect’s America-first agenda.Investors appear to have fewer qualms. Bessent gets high marks as a fiscal conservative and a champion of growth — at Key Square, he told clients that Trumponomics would usher in an “economic lollapalooza” — through deregulation and lower taxes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Cabinet: Inside the Many Ideologies of His Nominees

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      One faction of prospective nominees appears focused on revenge, another on calming markets and a third on relentlessly — perhaps hopelessly — cutting people and budgets.President-elect Donald J. Trump’s final flurry of cabinet picks and other appointments rounded out what his aides described as a unified, loyal, MAGA-driven administration. But scratch the surface and there are at least three distinct factions and a range of ideologies, barely suppressed to get through the rigors of the confirmation process.There is a revenge team, led by prospective nominees with instructions to rip apart the Justice Department, the intelligence agencies and the Defense Department, hunting down the so-called deep state and anyone who participated in the prosecutions of Mr. Trump.There is a calm-the-markets team, which Mr. Trump hopes will be led by Scott Bessent, the Wall Street billionaire who Mr. Trump chose for Treasury secretary. Mr. Bessent can recite the MAGA lines about deregulation and lower taxes but would likely try to make sure Mr. Trump’s most extreme solutions, like inflation-inducing tariffs on foreign goods, do not end the post-election stock market surge.And then there is a government shrinkage team, led by Elon Musk and Vivek Ramaswamy, whose goals are wildly ambitious, to put it mildly. They want to carve what Mr. Musk says will be “at least” $2 trillion from the annual federal budget, a figure that exceeds the annual cost of salaries for every federal employee. (For the record, the total federal budget in the 2024 fiscal year was $6.75 trillion.)How these missions will mesh and where they will collide is one of the biggest unknowns of the incoming administration.Diversity of ideology and opinion is usually seen as a strength, not a defect, of presidential cabinets. But if there is a surprise about Mr. Trump’s choices in recent days, it is the range of experiences and worldviews that in some cases lie just beneath a veneer of recently declared Make America Great Again loyalty — and loyalty to Mr. Trump himself. It is hard to imagine a few of his picks sitting comfortably at a Trump rally.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More