Wall Street Anticipates Unrestrained Trump 2.0, Bessent Shows Full Support for MAGA
The Treasury secretary's subdued reassurances to financial markets indicate a lack of resistance within the administration to Trump's agenda.
TroibNews 
Treasury Secretary Scott Bessent, a hedge fund manager with a distinctive presence, has rapidly emerged as one of the administration's most ardent supporters of policies that are reshaping global trade and unsettling financial markets.
The seasoned Wall Street professional, known for his methodical approach, has pivoted from advocating gradual trade barrier implementations to becoming a prominent voice for President Donald Trump’s MAGA 2.0 agenda. Bessent emphasizes that short-term market reactions take a backseat to administration objectives such as sweeping tariffs.
Amid a recent significant market downturn, Bessent took to television earlier this month to assert that the U.S. needs to “detox” itself off government spending. He also stirred controversy in a recent speech by claiming that “access to cheap goods is not the essence of the American Dream” and expressed he was “less concerned” about the immediate economic repercussions of tariffs.
When asked about a recent market decline that saw the S&P 500 drop over 10 percent from its peak, he stated that "corrections are healthy." He elaborated on NBC's "Meet the Press," saying, "What's not healthy is straight up, that you get these euphoric markets. That's how you get a financial crisis. I'm not worried about the markets. Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great."
This stance has taken Wall Street by surprise.
“He definitely has not played the role to date that the markets had expected,” remarked Sarah Bianchi, a senior managing director at investment bank advisory firm Evercore ISI. “It’s always hard for anyone to figure out when and how to go to the president and say you need a big course correction — and it’s particularly hard in Trump 2.0.”
Bessent’s restrained reassurances to financial markets suggest that there may be no officials within the administration willing to challenge Trump’s amplified mandate to reshape U.S. economic policy. Earlier stock market fluctuations, along with the insights of traditional economic advisors like Trump’s former Treasury secretary Steven Mnuchin, previously helped mitigate the president’s protectionist and potentially damaging priorities during his first term.
Now, as noted by a former Trump administration official, “whatever the guard rails that were in place the first administration no longer exist.”
Wall Street initially had a positive outlook on Bessent, a protégé of George Soros with limited experience in Republican politics prior to joining Trump’s administration, but may have underestimated his commitment to the president’s agenda.
Jens Nordvig, founder of Exante Data and a long-time acquaintance of Bessent, emphasized that the Treasury secretary is keenly interested in geopolitics, especially in curbing China’s influence. While Bessent is not as protectionist as Trump— “I think he’s very well aware that there’s some serious economic costs to raising tariffs dramatically,” Nordvig noted— this doesn’t imply the same level of opposition to tariffs that characterized Mnuchin’s tenure.
The administration's early agenda has been heavily focused on significant trade announcements involving China, Canada, and Mexico—actions that have largely been spearheaded by the White House, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. The competitive, if not tense, relationship between Bessent and Lutnick, each vying for Trump’s support to lead Treasury, is well-known. A source familiar with Bessent’s situation remarked that the Treasury secretary has had to “walk carefully” while navigating the tariff agenda pushed by Trump, White House trade advisor Peter Navarro, and Lutnick.
“He’s got to be careful so that he’s not a negative Nancy,” the source compared the dynamics to a “Brazilian knife fight with the lights out.”
A Treasury spokesperson asserted that the secretary “stands in complete support of President Trump’s agenda to restore our economy and make life more affordable for Americans of all backgrounds.” The spokesperson added, “He is working tirelessly to enact this mandate on behalf of the President, and ensure that Main Street and Wall Street both reap the benefits of President Trump’s winning economic agenda.”
Bessent recently acknowledged that “there’s going to be a natural adjustment as we move away from public spending to private spending.” He pointed out that “the bottom 50 percent of working Americans have gotten killed. We are trying to address that,” during an appearance on CNBC. He also suggested, “Could we be seeing that this economy that we inherited is starting to roll a bit? Sure.”
Bessent’s consistent message has emphasized that long-term economic benefits may require some short-term discomfort, even as Wall Street seeks comfort and reassurance. Josh Lipsky, the senior director of the Atlantic Council's GeoEconomics Center, noted, “It’s very clear to people now that this is not someone who is simply channeling the voice of markets. This is someone who has a very different view of the world.” He added that Bessent’s views reflect the belief that “many things are broken, and therefore, if the policy solutions seem extreme, it's only because they are addressing what they perceive as a broken system.”
While the majority of economists still anticipate economic growth for the year, there are concerning indicators that the administration's aggressive policies may hinder that growth. Big bank economists are now predicting a higher likelihood of stagflation or recession, and top CEOs surveyed by the Business Roundtable reported they are scaling back hiring and investment plans. Goldman Sachs CEO David Solomon remarked in a Fox Business appearance that policy uncertainty is hampering dealmaking and causing investors to remain cautious.
Bessent has pointed to a recent fall in long-term borrowing costs linked to 10-year Treasury securities and declining gasoline prices as evidence that Trump’s agenda is positively influencing the economy. Nevertheless, he has reiterated that the administration's strategies will fundamentally alter the economic landscape by moving away from government spending and will require an adjustment phase.
Stephen Moore, a former Trump advisor and senior visiting fellow at the Heritage Foundation, emphasized that “there is no doubt that Trump has had a big impact on his thinking on the economy,” praising Bessent for skillfully avoiding pitfalls during media interactions that could provoke Trump. “On policy, he’s become more Trumpian in how he thinks about how these policies impact blue-collar, middle-class America.”
Camille Lefevre for TROIB News
The seasoned Wall Street professional, known for his methodical approach, has pivoted from advocating gradual trade barrier implementations to becoming a prominent voice for President Donald Trump’s MAGA 2.0 agenda. Bessent emphasizes that short-term market reactions take a backseat to administration objectives such as sweeping tariffs.
Amid a recent significant market downturn, Bessent took to television earlier this month to assert that the U.S. needs to “detox” itself off government spending. He also stirred controversy in a recent speech by claiming that “access to cheap goods is not the essence of the American Dream” and expressed he was “less concerned” about the immediate economic repercussions of tariffs.
When asked about a recent market decline that saw the S&P 500 drop over 10 percent from its peak, he stated that "corrections are healthy." He elaborated on NBC's "Meet the Press," saying, "What's not healthy is straight up, that you get these euphoric markets. That's how you get a financial crisis. I'm not worried about the markets. Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great."
This stance has taken Wall Street by surprise.
“He definitely has not played the role to date that the markets had expected,” remarked Sarah Bianchi, a senior managing director at investment bank advisory firm Evercore ISI. “It’s always hard for anyone to figure out when and how to go to the president and say you need a big course correction — and it’s particularly hard in Trump 2.0.”
Bessent’s restrained reassurances to financial markets suggest that there may be no officials within the administration willing to challenge Trump’s amplified mandate to reshape U.S. economic policy. Earlier stock market fluctuations, along with the insights of traditional economic advisors like Trump’s former Treasury secretary Steven Mnuchin, previously helped mitigate the president’s protectionist and potentially damaging priorities during his first term.
Now, as noted by a former Trump administration official, “whatever the guard rails that were in place the first administration no longer exist.”
Wall Street initially had a positive outlook on Bessent, a protégé of George Soros with limited experience in Republican politics prior to joining Trump’s administration, but may have underestimated his commitment to the president’s agenda.
Jens Nordvig, founder of Exante Data and a long-time acquaintance of Bessent, emphasized that the Treasury secretary is keenly interested in geopolitics, especially in curbing China’s influence. While Bessent is not as protectionist as Trump— “I think he’s very well aware that there’s some serious economic costs to raising tariffs dramatically,” Nordvig noted— this doesn’t imply the same level of opposition to tariffs that characterized Mnuchin’s tenure.
The administration's early agenda has been heavily focused on significant trade announcements involving China, Canada, and Mexico—actions that have largely been spearheaded by the White House, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. The competitive, if not tense, relationship between Bessent and Lutnick, each vying for Trump’s support to lead Treasury, is well-known. A source familiar with Bessent’s situation remarked that the Treasury secretary has had to “walk carefully” while navigating the tariff agenda pushed by Trump, White House trade advisor Peter Navarro, and Lutnick.
“He’s got to be careful so that he’s not a negative Nancy,” the source compared the dynamics to a “Brazilian knife fight with the lights out.”
A Treasury spokesperson asserted that the secretary “stands in complete support of President Trump’s agenda to restore our economy and make life more affordable for Americans of all backgrounds.” The spokesperson added, “He is working tirelessly to enact this mandate on behalf of the President, and ensure that Main Street and Wall Street both reap the benefits of President Trump’s winning economic agenda.”
Bessent recently acknowledged that “there’s going to be a natural adjustment as we move away from public spending to private spending.” He pointed out that “the bottom 50 percent of working Americans have gotten killed. We are trying to address that,” during an appearance on CNBC. He also suggested, “Could we be seeing that this economy that we inherited is starting to roll a bit? Sure.”
Bessent’s consistent message has emphasized that long-term economic benefits may require some short-term discomfort, even as Wall Street seeks comfort and reassurance. Josh Lipsky, the senior director of the Atlantic Council's GeoEconomics Center, noted, “It’s very clear to people now that this is not someone who is simply channeling the voice of markets. This is someone who has a very different view of the world.” He added that Bessent’s views reflect the belief that “many things are broken, and therefore, if the policy solutions seem extreme, it's only because they are addressing what they perceive as a broken system.”
While the majority of economists still anticipate economic growth for the year, there are concerning indicators that the administration's aggressive policies may hinder that growth. Big bank economists are now predicting a higher likelihood of stagflation or recession, and top CEOs surveyed by the Business Roundtable reported they are scaling back hiring and investment plans. Goldman Sachs CEO David Solomon remarked in a Fox Business appearance that policy uncertainty is hampering dealmaking and causing investors to remain cautious.
Bessent has pointed to a recent fall in long-term borrowing costs linked to 10-year Treasury securities and declining gasoline prices as evidence that Trump’s agenda is positively influencing the economy. Nevertheless, he has reiterated that the administration's strategies will fundamentally alter the economic landscape by moving away from government spending and will require an adjustment phase.
Stephen Moore, a former Trump advisor and senior visiting fellow at the Heritage Foundation, emphasized that “there is no doubt that Trump has had a big impact on his thinking on the economy,” praising Bessent for skillfully avoiding pitfalls during media interactions that could provoke Trump. “On policy, he’s become more Trumpian in how he thinks about how these policies impact blue-collar, middle-class America.”
Camille Lefevre for TROIB News
