US Treasury Secretary Scott Bessent could take on a new role as President Donald Trump’s artificial intelligence (AI) czar, a source familiar with the discussions told Reuters.
No final decision has been made, a second source said, and the Treasury has not issued a public comment. These rumors come as Trump has downplayed calls for stricter AI oversight.
A Treasury Chief Wearing Two Hats
Trump said Saturday he would form an AI Force and name an AI czar, modeled on the Space Force. He gave no details on either initiative.
Bessent already sits at the center of Washington’s AI diplomacy. He led AI risk talks with China in New York on Sunday. That was ahead of Trump’s summit with Chinese President Xi Jinping this week. Washington proposed an AI safety notification system and a US-China AI dialogue, with a focus on national security.
The Treasury chief’s plate is already full. Trump has previously tapped Bessent to lead a revamp of US trade policy and negotiate Ukraine’s critical minerals deal. He also briefly ran the Consumer Financial Protection Bureau (CFPB). Today, he serves as acting commissioner of the Internal Revenue Service (IRS). His department is separately leading a push to isolate Iran through sanctions.
A Need for a Dedicated Treasury Head
Meanwhile, Bessent’s core job has gotten harder. The 10-year Treasury yield hit a 19-year high near 5.04% last week before retreating to about 4.95%. HSBC now projects a lower 10-year yield near 4.65% by year-end. Other forecasters see it climbing toward 5.3%, with some flagging a 6% risk further out.
That volatility adds pressure just as Trump weighs handing Bessent a second title. Traders have already priced sharp swings in Federal Reserve rate expectations this month. Any sign that Treasury leadership is stretched thin could shape how markets read the department’s next move.
His well-known skepticism toward AI regulation will likely shape whatever mandate the next czar receives. Whether Bessent can manage bond markets, sanctions enforcement, and AI policy at once is an open question. The coming weeks should offer an answer.
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