The decision regarding President-elect Trump’s Treasury Secretary pick is fast approaching, with key candidates emerging as the final contenders. Trump’s economic team will face the task of implementing an ambitious tariff plan while maintaining stability in the financial markets.
The president-elect appears to be struggling to identify a nominee who both supports these tariff policies and can reassure markets that the economy will remain stable despite the disruptions.
Scott Bessent may change to National Economic Council chair despite speculation.
Sources familiar with the transition process indicate that a final decision on the Treasury pick is expected shortly. Marc Rowan, co-founder of Apollo Global Management, former Federal Reserve Board member Kevin Warsh, and Scott Bessent, founder of Key Square Group, are among those vying for the position.
Rowan is scheduled to meet with Trump at Mar-a-Lago, although neither the Trump team nor Apollo Global have commented publicly about the meeting. The race for Treasury Secretary seems to be coming down to a close contest between Rowan and Warsh.
Bessent, once viewed as a strong contender, may be offered the role of National Economic Council chair instead, though some insiders still consider him a frontrunner for Treasury.
The Treasury Secretary position is one of Trump’s most crucial Cabinet picks, with major implications for his economic agenda. Trump’s campaign focused on reviving the economy, a promise that resonated strongly with voters concerned about inflation. He also seeks to extend the 2017 tax cuts that are set to expire next year.
However, Trump’s boldest proposal is to implement a tariff of 10 to 20 percent on all imported goods, designed to attract investment and bolster American industries. This represents a shift from his earlier trade policies.
An insider involved in the selection process emphasized that the Treasury Secretary plays a pivotal role in shaping Trump’s economic agenda, particularly regarding tariffs, which fall under the Treasury’s purview. This pick is considered critical for Trump’s broader economic strategy.
While Trump is committed to his tariff plan, he is also mindful of how the selection will impact the market’s reaction. Throughout his first term, Trump paid close attention to the stock market, using it as an indicator of the effectiveness of his economic policies.
Rowan has been described by sources as a frontrunner due to his extensive background in financial markets. One source compared him to a “thoroughbred” in the race, noting that his global reputation and experience as a CEO would inspire confidence on Wall Street.
Warsh, currently part of Trump’s economic transition team, is another key contender. He has expressed interest in taking over as Federal Reserve Chair once Jerome Powell’s term ends. Warsh’s close ties to Trump, including his father-in-law Ronald Lauder, a known Trump ally, have strengthened his candidacy.
Despite his qualifications, Warsh’s pro-growth, anti-protectionist stance has raised concerns among some members of Trump’s base, particularly the MAGA movement. One source noted that his traditional pro-business views have led to skepticism from certain factions within the Republican Party.
Another potential nominee is former U.S. trade representative Robert Lighthizer, a strong advocate for tariffs. Though still considered a possibility for Treasury, some believe Lighthizer may take on a different role within the Trump administration.
A person familiar with the process pointed out that the Trump team is carefully considering the broader impact of the Treasury pick, particularly regarding Trump’s policies on China and tariffs. Lighthizer is seen as a strong candidate due to his alignment with Trump’s economic vision, especially regarding tariffs.
If Lighthizer were chosen, he would likely act quickly to implement tariffs, possibly to other candidates who may prefer a more gradual approach to minimize potential market volatility.
Cantor Fitzgerald CEO Howard Lutnick, who had been considered for Treasury, is now out of the running after being appointed Commerce Secretary. While Lutnick was publicly supported by Elon Musk for the Treasury role, his strong alignment with Trump’s tariff agenda led to his selection for Commerce instead.
Senator Bill Hagerty (R-Tenn.) stated that Trump is taking his time with the final decision, and there’s no sense of urgency. Hagerty, who was with Trump at a SpaceX launch and reportedly considered for Treasury, emphasized that Trump is carefully reviewing his options before making the choice.
