Two prominent supporters of President-elect Trump’s campaign have emerged as the frontrunners to lead the Treasury Department during his second administration.
Trump has reportedly narrowed his list to Scott Bessent, founder of Key Square Group, and Howard Lutnick, chairman and CEO of Cantor Fitzgerald.
Both spent millions to reelect Trump, have played key roles in his campaign and transition and are on the cusp of one of the most powerful positions in Washington.
Whomever Trump picks will take leading roles in his fight to cement his 2017 tax law, impose aggressive new tariffs and run point on a major shift in economic policy.
Here’s what you should know about Trump’s potential picks, and the challenges they will face in office if confirmed.
Scott Bessent
Bessent, who served as an economic advisor on the Trump campaign, is a hedge fund manager who frequently appeared on financial talk shows during the campaign to tout Trump’s economic proposals and denounce those of Vice President Harris.
He has argued in favor of the president-elect’s plans for deregulation and energy independence, while calling Harris an “economic illiterate” and suggesting that she would prompt a “Kamala crash” if elected.
At one point, Bessent floated a plan to nominate a “shadow” Federal Reserve chair prior to the end of current Fed Chair Jerome Powell’s term in 2026 — a Trump appointee who frequently sparred with the president-elect during his first term.
Trump himself has seemed particularly taken by Bessent, calling him “one of the most brilliant men on Wall Street” at a rally in August. The president-elect pulled the investor on stage at the event, where he expressed confidence in Trump’s chances at reelection.
Bessent, who spent more than a decade working for Democratic megadonor George Soros before founding Key Square Group, has become a frontrunner for Treasury secretary, especially since billionaire investor John Paulson bowed out of the race earlier this week.
“His skills are the sort of skills you need for the moment. We are going to engaging in some potentially significant changes to America’s trading and financial relationships,” a former Trump Treasury Department official said of Bessent.
The former official said that Bessent’s expertise in bond and currency markets could be crucial in helping the Trump administration navigate blowback from the financial world.
“It seems like a no brainer. It just seems like his skill set is tailor made for what we have in front of us today,” the official said.
However, some of Trump’s advisors have reportedly pushed back against Bessent, suggesting that he has been insufficiently supportive of the president-elect’s tariff policies, according to Politico.
Howard Lutnick
Lutnick, who is currently serving as co-chair of the Trump transition, has also emerged as a leading candidate to head up the Treasury Department in recent days.
Unlike Bessent, Lutnick has publicly embraced Trump’s tariff plans.
“When was America great?” he asked during Trump’s controversial Madison Square Garden rally last month. “At the turn of the century, our economy was rocking. This is 1900, 125 years ago. We had no income tax, and all we had was tariffs.”
Lutnick is the chairman and CEO of Cantor Fitzgerald. He oversaw the company’s response to 9/11, when more than 600 of Cantor Fitzgerald’s employees were killed at the World Trade Center. He is also a longtime friend of Trump.
He is also a prominent supporter of cryptocurrencies, which has endeared him to many within the crypto space.
“I think @howardlutnick would make a fantastic Treasury Secretary,” Anthony Pompliano, founder and CEO of investment firm Professional Capital Management, said on X on Wednesday. “We need smart, successful people in leadership positions!”
However, the former Treasury official said Lutnick is “a little more of a bulldog and a little bit less polished than Bessent is, but I think that’s not necessarily what you want for Treasury.”
“For Treasury, you want somebody who’s able to talk to markets, calm markets, assuage markets, guide markets to where they need to be,” the former official said.
Taxes
With Republican majorities in both the House and Senate, Trump is poised to secure an extension of his signature 2017 tax law, the Tax Cuts and Jobs Act (TCJA).
The TCJA lowered certain personal income tax rates, as well as the corporate tax rate. Major provisions of the law are set to expire in 2026, teeing up taxes as a central issue for the next Congress.
However, the tax law could spark an intraparty battle in the GOP between those in favor of further cutting taxes and those concerned about expanding the deficit. An extension of the TCJA is estimated to cost $4.6 trillion, according to the Congressional Budget Office (CBO).
Tariffs and trade
Trump has proposed an across-the-board tariff of 10 or 20 percent on all imported goods and a 60 percent tariff on all Chinese goods. The president-elect has argued that such tariffs could boost domestic manufacturing and potentially replace income tax.
However, his tariff proposals have largely been met with skepticism by experts, who have warned that they could raise prices for Americans and spark retaliation from U.S. trading partners. Whoever it is, Trump’s Treasury secretary will likely spend significant time conducting trade talks with other governments.
Lutnick’s strong support of Trump’s tariffs could make him a natural fit to push for the president-elect’s trade agenda abroad. While former Treasury Secretary Steven Mnuchin enjoyed a close relationship with Trump, he also faced pressure from some Trump advisors to go harder in support of tariffs and trade barriers.
The former Treasury official said Bessent could serve in a similar role for Trump, balancing the president-elect’s aggressive dealmaking posture with a more genial approach.
“Everyone has good things to say about Scott Bessent,” the former official said.
Tariffs were a popular tool for Trump in his first term in office. Amid an increasingly populist mood across both sides of the aisle, President Biden kept some of the former president’s tariffs in place and levied new tariffs on some Chinese products.
The president has significant authority to levy tariffs, as Congress has increasingly delegated authority over tariffs to the executive branch.
