Trump transition co-chairs Howard Lutnick and hedge fund executive Scott Bessent are embroiled in an increasingly bitter battle to become Treasury secretary in the incoming Trump administration, with the factions of Wall Street they represent trying to discredit each other.
Kevin Warsh, who is currently advising Trump's transition team on economic issues, is considered a candidate to take over as Federal Reserve chairman in 2026.
Outgoing Utah Sen. Mitt Romney, a Trump critic, said he would "refrain from expressing any thoughts" on a candidate for Treasury secretary because he will become a private citizen next year and has already left office. Mast said Lutnick is "my choice" but did not elaborate.
On Monday, several financiers supporting Trump's campaign moved to try to kill Lutnick's chances, saying he lacked experience for the job and was abusing his position as the leader of the transition team to secure the position for himself.
Bessant, known for making huge profits for Soros by betting against the yen and pound, came under attack late Monday when a transcript purporting to show poor returns for his hedge fund, Key Square Group, circulated in chat groups on Wall Street and elsewhere, appearing to cast doubt on his financial capabilities.
One person familiar with the growing rivalry described it as a "war of words" between the Lutnick and Bessant camps. Others said the friction could be a sign of a deepening divide within Trump's inner circle.
The dispute came two days after Musk endorsed Lutnick's candidacy, posting that he would "real effect change" in contrast to Bessant's "business as usual."
Musk's post raised alarm among some Wall Street executives, who backed Bessant as a more predictable candidate and viewed Lutnick as out of his depth.
"Unfortunately ... Lutnick is now abusing his position to prioritize his candidacy over others," one person close to Trump said. "I am sure the president will not be coerced into choosing him — that would be a huge mistake."
Another Trump supporter on Wall Street described Lutnick as a "risk-taker," noting that while he was crucial to the Republican candidate's White House campaign, he was unsuited for a position with enormous influence over the world's largest economy and global bond markets.
Growing opposition to Lutnick’s candidacy on Wall Street, according to interviews with Wall Street executives, makes the race for Treasury secretary the thorniest job yet for Trump, who has named most of his proposed Cabinet at breakneck speed in the past week.
One Trump donor who supports Bessant said Lutnick leads a "hard-line and conservative search committee that will ignore the president and focus on himself. The president-elect will not be played around with again."
The bitter fight between Bessant and Lutnick initially centered on positions on trade, with Trump seeking plans to raise import tariffs.
A Trump donor who supports Lutnick said the Kenda boss and the president-elect are "completely aligned" on tariffs and his economic agenda to stimulate the economy and achieve "energy dominance." "President Trump and Lutnick are working closely together on these critically important initiatives."
In an effort to discredit Bessant on Monday, anonymous sources circulated a report purportedly showing the investor's hedge fund had poor returns, showing that Bessant's Key Square had lost money in five of the past seven years, while such funds were generally profitable.
Top financiers backing Bessant say he has the experience and credibility to put key principles of Trump's economic agenda into action. He has even won over some former opponents on Wall Street. "I hate Trump, but I love my country and I want us to succeed... Bessant is someone we can all accept," said one top Democratic donor.
The intense race for the top economic post has also forced Trump to expand his field of candidates, including former Federal Reserve Governor Kevin Warsh, Apollo Global Management's private equity boss Mark Rowan, Tennessee Senator Bill Hagerty and Trump's former U.S. Trade Representative Robert Lighthizer.
Some Wall Street executives have welcomed Rowan's potential candidacy but have warned it would be difficult for him to leave his job running a firm with $700 billion in assets under management.
Article forwarded from: Jinshi Data