Thread by @MacroAlf

This is Scott Bessent, the new US Treasury Secretary.

Here is all you need to know about him.

1/

Trump revelaed his pick for Treasury Secretary: it's Scott Bessent.

Bessent leads the macro-focused hedge fund Key Square, and he has a long-standing reputation as a strong macro manager having worked with Druckenmiller and Soros too.

2/

Recently, he went on a podcast spur where he discussed his investment framework but more importantly how he sees the US economy.

Bessent's macro view on what the US economy needs can be summarized with his ''3-3-3'' rule:

3/

1) Cut the budget deficit to 3% of GDP by 2028
2) Push GDP growth to 3%
3) Pump out an extra 3 million barrels of oil each day

4/

Bessent believes globalization has led to unsustainable wealth inequality in the US: while the top 50% of Americans enjoy huge gains on their net assets, the bottom 50% isn't participating to wealth creation and suffers under debt burdens.

5/

To fix this, Bessent wants to push GDP growh to 3% via deregulation and more inclusive and organic growth.

In his mind, this doesn't require deficits above 3% though.

6/

In line with Musk, he believes one can rationalize US budget expenditures hence reduce deficits while simultaneously grow at 3% real GDP.

Additionally, he wants to build on the US energy independence by pumping an extra 3 million barrels of oil each day.

7/

Do you think Bessent's plan will work?

P.S. Would you like to get your hands on my flagship macro research?
For FREE - directly in your inbox?

Get it here:
👇


8/8docs.google.com/forms/d/e/1FAI…