According to an individual with knowledge of the talks who spoke to Reuters, US Treasury Secretary Scott Bessent might assume an additional title as President Donald Trump’s artificial intelligence (AI) czar.
A second insider noted that no definitive choice has been finalized yet, and the Treasury has not released any public statements regarding the matter. These reports emerge while Trump continues to minimize the need for tighter AI regulations.
A Treasury Chief Wearing Two Hats
On Saturday, Trump announced plans to establish an AI Force and appoint an AI czar, drawing inspiration from the Space Force, though he provided no specifics regarding either project.
Bessent is already positioned at the heart of AI diplomacy in Washington. He spearheaded discussions regarding AI risks with Chinese officials in New York on Sunday, preceding Trump’s meeting with Chinese President Xi Jinping scheduled for this week. During those talks, Washington advanced proposals for a US-China AI dialogue and an AI safety notification system, prioritizing national security concerns.
The Treasury secretary already manages a heavy workload. Trump previously assigned Bessent to head an overhaul of US trade policy and handle negotiations for Ukraine’s critical minerals agreement. Furthermore, Bessent briefly directed the Consumer Financial Protection Bureau (CFPB) and currently functions as the acting commissioner of the Internal Revenue Service (IRS). Concurrently, his agency is spearheading efforts to enforce sanctions aimed at isolating Iran.
A Need for a Dedicated Treasury Head
At the same time, Bessent’s primary responsibilities have become increasingly difficult. Last week, the 10-year Treasury yield reached a 19-year peak close to 5.04% before easing back to approximately 4.95%. HSBC currently forecasts that the 10-year yield will drop to roughly 4.65% by the end of the year, whereas other analysts anticipate an increase toward 5.3%, with select projections warning of a potential 6% risk down the line.
This market turbulence introduces further strain just as Trump considers bestowing an additional role upon Bessent. Throughout the month, traders have already anticipated significant fluctuations in expectations for Federal Reserve interest rates. Any indication that the leadership at the Treasury is overburdened could influence how financial markets interpret the department’s upcoming actions.
Bessent’s widely recognized skepticism toward AI oversight will likely define the parameters of whatever mandate is given to the next czar. It remains uncertain whether Bessent will be capable of simultaneously overseeing the bond market, sanctions enforcement, and AI policy, though the upcoming weeks are expected to provide clarity.