The competition to become Trump's Treasury secretary is getting more harried by the day

11/18/2024 22:01
The competition to become Trump's Treasury secretary is getting more harried by the day

The contest for Treasury Secretary has emerged as a key stumbling block in Donald Trump's presidential transition period.

The contest for Treasury secretary is emerging as a key stumbling block in Donald Trump's presidential transition as candidates rise and fall by the day and top advisers make their arguments before millions of followers.

Last week, the top contenders had appeared to be Howard Lutnick, CEO of Cantor Fitzgerald, and Scott Bessent, a former Soros Fund Management investing chief.

But the water is now murkier than ever after a weekend of even more intense back and forth unlike anything surrounding Trump's other picks so far.

Howard Lutnick, CEO of Cantor Fitzgerald and former US President and Republican presidential candidate Donald Trump (L) attend a remembrance ceremony on the 23rd anniversary of the September 11 terror attack on the World Trade Center at Ground Zero, in New York City on September 11, 2024. (Photo by Adam GRAY / AFP) (Photo by ADAM GRAY/AFP via Getty Images)

Cantor Fitzgerald CEO Howard Lutnick, right, and then-Republican presidential candidate Donald Trump attend a remembrance ceremony on the 23rd anniversary of the September 11 terror attack on the World Trade Center on Sept. 11, 2024. (ADAM GRAY/AFP via Getty Images) · ADAM GRAY via Getty Images

"Would be interesting to hear more people weigh in on this," Elon Musk even asked his 200+ million followers on Saturday before making his own views clear.

"My view fwiw is that Bessent is a business-as-usual choice, whereas [Lutnick] will actually enact change."

But even Musk hasn't been able to put an end to the debate, with Bessent still being pushed by prominent backers in Trump's orbit but new contenders apparently now in consideration.

On Sunday, the New York Times reported that Lutnick has "gotten on Mr. Trump’s nerves lately" and the President-elect is now expected to meet this week with former Federal Reserve governor Kevin Warsh and Apollo Global Management CEO Marc Rowan in a sign he is unsatisfied with his choices. (Disclosure: Yahoo Finance is owned by Apollo Global Management).

While much of the jockeying appears to be about not spooking the stock market with a controversial pick, much of the debate playing out in public appears to be about finding a candidate who is credible to business leaders but also on board with Trump's economic ideas, specifically tariffs.

Trump has long championed import duties as a potential "ring around the country" but with the business community often much less sanguine about his ideas.

The attempt to bridge the divide has been on display for weeks.

"When was America great?" Lutnick asked the crowd at Madison Square Garden even before the election before discussing the 1890s as an era where "all we had was tariffs" and the economy was "rocking."

It got a cheer but was clearly designed to appeal mostly to Trump himself, who talked about the era of William McKinley pretty much nonstop on the campaign trail.

Bessent weighed in last week with a Fox News op-ed where he talked argued that tariffs have a "long and storied history as both a revenue-raising tool and a way of protecting strategically important industries."

Scott Bessent speaks at the National Conservative Conference in Washington D.C., Wednesday, July 10, 2024. (Photo by Dominic Gwinn / Middle East Images / Middle East Images via AFP) (Photo by DOMINIC GWINN/Middle East Images/AFP via Getty Images)

Scott Bessent speaks at the National Conservative Conference in Washington in July. (DOMINIC GWINN/Middle East Images/AFP via Getty Images) · DOMINIC GWINN via Getty Images

As for Rowan, when he was asked about a possible trade war during an appearance last week at Yahoo Finance Invest conference last week, he downplayed the chances saying "markets are at the moment are not pricing in much for geopolitical risk."

He then quickly pivoted to arguing that Trump isn't a risk for global instability because of his strength.

The clear tension is that many of these candidates have often espoused more free trade efforts in the past and even, in the case of Warsh, have discussed "the false promise of protectionism."

How that would work in a Trump administration that appears determined to go ahead with high duties remains to be seen but the prospect of the tariffs has already led to considerable unease in the business community about the effect on everyday items to manufacturing inputs.

President-elect Trump is expected to meet with his additional candidates this week, according to multiple reports, signaling a process that could continue for at least the days ahead.

The Wall Street Journal also reports that Republican Sen. Bill Hagerty of Tennessee could also be in the mix

The President-elect's quickly changing preferences have already hung over the entire transition process after other picks have surprised political observers multiple times with conventional choices for other posts being discarded in favor of nominees that few saw coming.

CEO of  Apollo Global Management, Marc Rowan, during the panel on Markets, trends and opportunities the Global Hong Kong Global Financial Leaders Investment Summit on November 7, 2023 in Hong Kong, China. The Hong Kong Global Financial Leaders Investment Summit organised by the city's central bank the Hong Kong Monetary Authority is held at the Four Seasons hotel with the theme Living with Complexity, with Financials Leaders attending the event.  (Photo by Vernon Yuen/NurPhoto via Getty Images)

CEO of Apollo Global Management, Marc Rowan, during the panel in Hong Kong in 2023. (Vernon Yuen/NurPhoto via Getty Images) · NurPhoto via Getty Images

Other candidates have publicly announced they aren't in the running for the job.

Last Tuesday, billionaire investor John Paulson took his hat out of the ring for contention, saying "complex financial obligations" would keep him in the private sector. JPMorgan Chase (JPM) CEO Jamie Dimon also made it clear Thursday he won't be working for Trump in the coming years.

Fox Business host Larry Kudlow was also briefly mentioned as a candidate before representatives of the anchor told multiple reporters he is looking instead to stay with the network.

The Treasury secretary pick is also closely scrutinized as it could be holding up prominent other economic choices such as the next Commerce Secretary, National Economic Council director, and Trade representative.

Trump has nonetheless gone ahead with other economic facing posts announcing Brendan Carr as Chairman of the Federal Communications Commission and Chris Wright as Secretary of Energy.

"Trump of course likes to do things a bit differently, as we've noticed," noted Puck News founding partner William D. Cohan on the latest episode of Yahoo Finance's Capitol Gains podcast.

Ben Werschkul is Washington correspondent for Yahoo Finance.

Every Friday, Yahoo Finance's Rachelle Akuffo, Rick Newman, and Ben Werschkul bring you a unique look at how U.S. policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.

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