Scott Bessent, a hedge fund executive, is chosen by Donald Trump for the position of Treasury secretary.

On Friday, President-elect Donald Trump indicated that he plans to appoint hedge fund manager Scott Bessent as his Treasury secretary, a move that places a knowledgeable market expert and a devoted Trump supporter in a pivotal economic role.

Along with a few other contenders, including former Fed Governor Kevin Warsh and private equity executive Marc Rowan, the founder of Key Square Group had been considered a strong favorite for the position.

As the head of Treasury, Bessent, 62, will serve as both the U.S. fiscal watchdog and a key official to help Trump enact his ambitious economic agenda. A Wall Street heavyweight and advocate for many of the incoming president's economic goals, he will come to office at a critical time as the U.S. grapples with a growing economy alongside long-festering debt and deficit issues.

Trump referred to the potential candidate as a renowned international investor and geopolitical and economic strategist. Scott's narrative is about the American Dream.

Bessent, like Trump, supports gradual tariffs and deregulation to boost American business and manage inflation. Moreover, Bessent has championed the resurgence of manufacturing and energy self-sufficiency.

"A source close to Trump's thinking stated that Bessent is highly knowledgeable about the market."

The nominee has philanthropic ties with Yale University, Rockefeller University, and the Classical American Homes Preservation Trust.

One challenge Bessent must overcome is his past relationship with billionaire investor and worldwide provocateur George Soros, as he was previously the chief investment officer for Soros' fund.

CNBC has reached out to the Trump transition team for comment.

Trump's decision to appoint Bessent to a key position was preceded by a week of speculation about who would secure the role. Yesterday, the Wall Street Journal published a report suggesting that Warsh could be chosen for the job and then work there until mid-2026 before taking over as chair of the Federal Reserve after Powell's term ends.

If Bessent is appointed to the Treasury job, it may pave the way for Warsh to become the head of the central bank, while he is also considered a potential candidate for the National Economic Council.

The Treasury secretary is the lynchpin for the White House economic agenda.

Trump has appointed Bessent as his key adviser on fiscal issues while managing a financial situation that has seen debt and deficits well in recent years. The U.S. has a total debt of more than $36 trillion, of which $28.7 trillion is owed by the public. The deficit is expected again to approach $2 trillion in fiscal 2025, with debt service payments projected around $1.2 trillion.

Not everybody around Trump has been happy with his interest in Bessent.

Elon Musk, a confidante of Trump, endorsed Howard Lutnick, the chief of Cantor Fitzgerald, last week. However, others close to the president-elect believe that Bessent has not been rigorous enough in his support for tariffs, while Warsh has made public statements against the levees.