Scott Bessent, Trump’s Treasury Pick, Is Poised to Test ‘Three Arrows’ Economic Strategy

Published On Dec 13, 2024, 11:54 AM

Scott Bessent, the anticipated Treasury Secretary under President-elect Donald Trump, unveiled a "3-3-3" economic plan aiming for 3% growth, reducing the budget deficit to 3% of GDP, and increasing energy production by 3 million barrels of oil per day. This plan parallels Japan's previous "Three Arrows" initiative and is seen as a method to address current economic issues like inflation and sluggish growth. Its success hinges on various factors, including potential tax cuts and global oil demand rates.

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Stock Forecasts

XLEView XLE chart on TradingView

Positive

Rising energy production is generally positive for oil and energy stocks, especially if it leads to increased supply in a tight market. However, the feasibility of the 3% growth and deficit reduction hinges on effective policy execution, which poses risks.

SPYView SPY chart on TradingView

Negative

If the implementation of the proposed economic measures faces significant challenges, it could lead to negative sentiments in the broader market, particularly if tariffs are increased sharply, affecting trade relations.

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