Tuesday, November 26, 2024
Year : 2, Issue: 13
Anadolu Agency: The US markets reacted positively to President-elect Donald Trump’s nomination of investor and hedge fund manager billionaire Scott Bessent for the Department of Treasury.
Trump said that Bessent will help him usher in “a new Golden Age for the United States” after the markets closed on Friday night, with his Truth Social platform emphasizing that Bessent will support Trump’s policies.
Bessent told the Wall Street Journal on Sunday that his priority would be to fulfill Trump’s promises for tax cuts, which includes making Trump’s first term tax cuts permanent and eliminating taxes on tips, social security benefits, and overtime pay.
The Wall Street Journal reported that Trump chose Bessent among others because he’s confident he can carry out the second Trump administration’s policies.
US media outlets reported that Bessent advised Trump to follow his “3-3-3” plan, which includes reducing the ratio of budget deficit to gross domestic product (GDP) to 3% by 2028, increasing GDP growth to 3% via deregulation, and boosting energy production to an additional 3 million barrels of oil or equivalent on a daily basis.
The US bond futures also increased after Trump’s win in the presidential elections, since his policies were generally considered to be positive for growth by large corporations while giving rise to inflationary pressures, which could mean that the Fed may cut rates slower than expected.
The increases in bond futures declined after Bessent’s nomination. The US 10-Year Futures bond fell more than 14 basis points to 4.27%.
The US Dollar Index declined from its two-year highs to 106.8, as Bessent’s nomination eased concerns over Trump’s aggressive monetary policy promises.
Analysts noted that Bessent was perceived by investors to be tough on government spending but more balanced on tariffs, as someone who will support the stock market with his pro-market views, and someone who can soften Trump’s aggressive policies.
