Investing.com-- Donald Trump’s nomination of Scott Bessent as his Treasury Secretary is a positive sign, TD said in a note, stating that the prominent investor was one of the better options for the role.
TD said Bessent was likely to be a “voice for moderation” within Trump’s administration, especially with regards to extremist views on trade tariffs and immigration.
“Bessent will be a voice within the White House to be strategic in the use of tariffs to tear down trade barriers. We also expect he will caution against mass deportations. Our view is that getting too aggressive on either front could impact the performance of the stock market,” TD analysts wrote in a note.
Trump has vowed to crack down on immigration, and has also vowed to impose steep import tariffs on several major trading partners, especially China and Mexico. Heightened trade tariffs threaten to spark a renewed global trade war.
TD noted Bessent’s understanding of markets on a macro scale, and said his nomination bodes well for picks for other financial regulatory roles.
Bessent is a career investor, having worked under George Soros and Brown Brothers Harriman, before founding hedge fund Key Square Capital. He has a history of donating to Democrats, as well as Trump, and has also called for tax reforms and deregulation.
TD noted that Bessent’s pick also kept former Federal Reserve Governor Kevin Warsh in the running to replace Fed Chair Jerome Powell, when the latter’s term expires in 2026.
TD viewed Warsh as “broadly positive” for financials, given his work as Fed Governor during the 2008 financial crisis.
U.S. stock index futures rose on Sunday evening after Bessent's nomination, which was announced on Friday evening.