Two prominent supporters of President-elect Trump's campaign have emerged as front-runners to lead the Treasury Department in his second administration.
President Trump has reportedly narrowed his list of candidates to Scott Bessent, founder of Key Square Group, and Howard Lutnick, chairman and CEO of Cantor Fitzgerald. .
Both men have spent millions of dollars on Trump's re-election campaign, played key roles in Trump's campaign and transition, and are looming over one of the most powerful positions in Washington.
Whoever President Trump chooses will play a leading role in the fight to strengthen the 2017 tax law, impose aggressive new tariffs and make major shifts in economic policy.
Here's what you need to know about President Trump's potential picks and the challenges they'll face in office if confirmed.
scott bessent
Bessent, a hedge fund manager who served as an economic advisor to the Trump campaign, frequently appeared on financial talk shows during the campaign, touting President Trump's economic proposals and criticizing those of Vice President Harris.
While he claimed to support the president-elect's plans for deregulation and energy independence, he called Harris “economically illiterate” and suggested she would cause a “Kamala crash” if elected.
At one point, Mr. Bessent floated plans to name a “shadow” Fed chair ahead of Fed Chairman Jerome Powell's term ending in 2026. Chairman Powell was appointed by President Trump and frequently sparred with the president-elect during his first term.
Trump himself appears to be particularly fond of Bessent, calling him “one of the brightest people on Wall Street” at a rally in August. The president-elect brought the investor on stage at the event to express confidence in Trump's re-election chances.
Bessent worked for Democratic megadonor George Soros for more than a decade before founding Key Square Group, especially after billionaire investor John Paulson withdrew from the race earlier this week. Since then, he has become the leading candidate for Treasury Secretary.
“His skills are the skills we need at this moment. We're going to [be] “This could lead to significant changes in U.S. trade and financial relations,” a former Trump Treasury official said of Bessent.
Mr. Bessent's expertise in fixed income and currency markets could be crucial as the Trump administration deals with headwinds from the financial world, former officials said.
“It seems like a no-brainer. His skill set seems tailor-made for what we have in front of us today,” the source said.
But some of Trump's advisers have reportedly pushed back against Bessent, suggesting that he does not fully support the president-elect's tariff policies. According to Politico.
howard lutnick
Lutnick, who currently serves as Trump's transition co-chair, has emerged in recent days as a potential candidate for the top position at the Treasury Department.
Unlike Mr. Bessent, Mr. Lutnick has publicly supported President Trump's tariff plans.
“When was the last time America was great?” he asked at President Trump's controversial Madison Square Garden rally last month. “At the beginning of this century, our economy was in great turmoil. This was in 1900, 125 years ago. We had no income tax, only customs duties.”
Lutnick is chairman and CEO of Cantor Fitzgerald. He oversaw the company's response to 9/11, when more than 600 Cantor Fitzgerald employees were killed at the World Trade Center. He is also a longtime friend of Trump.
He is a prominent supporter of cryptocurrencies and is beloved by many in the cryptocurrency industry.
“I think @howardlutnick would be a great Treasury Secretary,” Anthony Pompliano, founder and CEO of investment firm Professional Capital Management, said on social platform X on Wednesday. “We need smart and successful people in leadership positions!”
But a former Treasury official said Mr. Lutnick was “more of a bulldog and less sophisticated than Mr. Bessent, and I don't think that's necessarily what you want at the Treasury.”
“For the Treasury Department, we need someone who can talk to the market, calm the market, reassure the market and guide the market in the direction it needs to go,” the former official said.
tax
With Republicans holding majorities in both houses of Congress, President Trump is poised to secure an extension of his signature 2017 tax law, the Tax Cuts and Jobs Act.
This law reduced corporate tax rates as well as certain personal income tax rates. Key provisions of the law are set to expire in 2026, making taxes a central issue in the next Congress.
However, the tax law could spark an intra-party battle between those in the Republican Party who support further tax cuts and those concerned about widening the budget deficit. The extension of the Tax Cuts and Jobs Act is estimated to cost $4.6 trillion, according to the Congressional Budget Office.
tariffs and trade
President Trump has proposed imposing a flat 10% or 20% tariff on all imported goods and a 60% tariff on all Chinese goods. The president-elect has argued that these tariffs would encourage domestic manufacturing and could replace income taxes.
But his tariff proposals have been met with skepticism, primarily from experts, who warn they could raise prices for Americans and trigger retaliation from America's trading partners. Whoever that person is, President Trump's Treasury secretary will likely spend a significant amount of time negotiating trade with other governments.
Mr. Lutnick is a strong supporter of President Trump's tariffs, which could make him a natural choice to help advance the president-elect's trade policy abroad. Former Treasury Secretary Steven Mnuchin had a close relationship with President Trump, but was also under pressure from some Trump advisers to further support tariffs and trade barriers.
A former Treasury official said Mr. Bessent could play a similar role for President Trump, balancing the president-elect's aggressive trading stance with a more benign approach.
“Everyone has good things to say about Scott Bessent,” the former official said.
Tariffs were a popular tool during Trump's first term in office. Amid a growing populist mood on both sides, President Biden has maintained some of the previous president's tariffs and imposed new tariffs on some Chinese products.
Congress has increasingly delegated tariff authority to the executive branch, giving the president significant authority to impose tariffs.
