Not only does Bessent-a hedge fund manager by trade-come from the same world as Wall Street and European traders, but he's also framed Trump's tariffs plan as a negotiation tool rather than a foregone conclusion.
Paul Donovan, chief economist at UBS Global Wealth Management, explained in a note on Monday morning seen by Fortune that markets had reacted positively because 'investors prefer orthodoxy, predictability, and coherence from economic policy; there were fears that some of the candidates may not possess those attributes. Bessent does.'
Bessent has said he regards taxing U.S. consumers via trade tariffs as a bargaining tool-essentially the stance in Trump's first term. Others in the cabinet disagree, but investors will be pleased there is one voice of trade tax moderation.
Bessent reportedly wrote that the 'tariff gun will always be loaded and on the table but rarely discharged,' signaling a cautious approach to trade taxes.
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