The search for Trump's top economic policymaker descended into chaos over the weekend, with contenders jockeying for support, aides scrambling to find a replacement and the President-elect furious about the behind-the-scenes fight spilling into public view.
Billionaire Elon Musk spoke with one of Trump's candidates for Treasury Secretary, Key Square Group founder Scott Bessent, over the weekend, but Musk has publicly backed another candidate, billionaire investor Howard Lutnick, as the best choice for the job, according to people familiar with the matter.
Trump appears frustrated by infighting over the top cabinet post, which includes overseeing the $28 trillion Treasury market and economic sanctions. Aides have been searching for a replacement, with Robert Lighthizer, Sen. William Hagerty, R-Ky., Apollo Global Management Inc. CEO Marc Rowan and former Fed Governor Kevin Warsh among the candidates.
Trump's aides have been in touch with Rowan to gauge his interest, and he has confirmed it, The Wall Street Journal previously reported. Rowan has not yet discussed the position with Trump and has not actively lobbied him for the Treasury job, according to people familiar with the matter. Trump's economic advisers raised Warsh as a possible candidate for Fed chairman earlier this year, and people close to Trump have discussed Warsh as a possible candidate for Treasury secretary, the people said.
In addition to the Treasury Department, other economic positions are also coveted, including director of the National Economic Council. Peter Navarro, Trump's former economic and trade adviser, is one of the candidates recommended for the position in recent days, people familiar with the matter said.
Last Saturday, Musk, who has become a close adviser and important supporter of Trump, posted on X that Bessant would "bring the United States to bankruptcy as usual, so changes must be made." And choosing Lutnick, co-chairman of President Trump's transition period, as Treasury Secretary can "real change be achieved."
Lutnick was a key fundraiser for Trump in the final stages of his campaign and helped lead the team's transition to the presidency. Some advisers were considering other options for Lutnick, such as a high-profile ambassadorship, some people familiar with the discussions said. Lutnick appeared to be withdrawing from the race late Friday, prompting Musk to speak out over the weekend, people familiar with the discussions said.
Musk responded to veteran investor Kyle Bass in a post supporting Lutnick on Saturday, who called Bessant a more qualified candidate who understands "markets, economics, people and geopolitics better than anyone I've ever dealt with." "The market initially rallied on Trump's victory, but then sold off as Lutnick expressed interest in the Treasury position," Bass said. "The market seems to be telling Trump that Bessant is a better fit."
In an interview with Fox News last week, Bessant praised Trump's economic agenda, saying "we could have a golden age in the next four years," including a return of manufacturing, U.S. energy dominance and a tech boom. People familiar with the matter said Lutnick was among those who resisted Bessant, saying the hedge fund manager was soft on key protectionist promises, including tariffs.
All of the jockeying has irritated Trump and his top aides, prompting him to consider choosing another candidate entirely, according to people familiar with the matter.
The race for Treasury secretary has become a proxy fight for the direction of Trump's presidency, with Bessant the clear favorite of some who prefer moderation, while Lutnick has won the support of many of Trump's die-hard supporters. Trump's next Treasury secretary will play a central role in crafting 2025 tax reform legislation. This person may also become a key figure in dialogue with foreign leaders on trade negotiations.
Musk has become one of Trump's top advisers on foreign and domestic policy, especially the federal budget, and his relationship with the Treasury nominee will largely determine the success of budget reform. Musk has fueled the flames on social media. According to people familiar with the matter, Musk has been weighing with Trump in private meetings who should take the position. Some of them explained that Musk had suggested to Trump that if Lutnick was appointed Treasury Secretary, he would be someone who could work better with financial institutions.
Lutnick has close allies with Trump and works at Trump's private club, which may give him an advantage over Bessant in the larger campaign for Treasury secretary. "Bitcoin will never have a stronger advocate than Lutnick," Robert Kennedy Jr. wrote on X on Saturday afternoon. Under Lutnick's leadership, financial services firm Cantor Fitzgerald embraced cryptocurrencies that many large companies shunned, making him popular with the cryptocurrency industry and its allies.
Trump has been seeking fast action on his second-term Cabinet nominations, including some unconventional choices such as former Rep. Matt Gaetz as U.S. Attorney General and veteran Fox News host Pete Hegseth as Defense Secretary. On Saturday, Trump named Chris Wright, who runs an oil and gas fracking services company in Colorado, as Energy Secretary and William Owen Scharf, one of his lawyers, as White House secretary.
Article forwarded from: Jinshi Data