Emergence of Treasury Secretary Contenders in Trump Administration

By Svea Herbst-Bayliss and Alexandra Ulmer
(Reuters) – Billionaire banker Howard Lutnick has emerged as a serious contender alongside investor Scott Bessent for the top Treasury job in the new Trump administration, two sources familiar with the matter said, as the race for the high-profile role heats up.

Lutnick, a longtime friend of Trump's and co-chair of the transition team, has received backing from at least one influential member of President-elect Donald Trump's inner circle for the Treasury Secretary role, one of the sources said.

Bessent, who served as an economic advisor to the Trump campaign and is also a fundraiser, remains a top contender, according to the sources, who wished to remain anonymous discussing positions prior to their announcement.

While the race seems to have narrowed to these two candidates for now, more contenders could emerge as Trump ultimately decides who he wants in the Treasury position.

"President-Elect Trump is making decisions on who will serve in his second administration," said Karoline Leavitt, Trump-Vance Transition spokeswoman. "Those decisions will be announced when they are made."

A spokesperson for Lutnick declined to comment, and a representative for Bessent did not immediately respond to a request for comment.

Since his victory on Nov. 5, Trump has announced several of his picks for key roles in his second presidency, set to begin in January. Analysts have noted that his selections are predominantly loyal individuals who may not challenge his controversial orders.

The Treasury Secretary role is one of the most prominent cabinet positions, overseeing the country’s financial and economic policy. It is closely monitored by global investors and Wall Street.

Recently, several names have surfaced as potential candidates for the job, including billionaire investor John Paulson, FOX Business Network personality and Trump advisor Larry Kudlow, Trump's former U.S. trade representative Robert Lighthizer, and former Securities and Exchange Commission Chairman Jay Clayton.

As of now, Kudlow did not immediately respond to a request for comment, and Lighthizer could not be reached for comment. When asked about any plans to join the Trump administration, Clayton described his willingness to accept a role where he could be effective, but declined to elaborate further.

Last week, sources reported that Paulson and Bessent were leading candidates for the Treasury position. Initially, Trump appeared to favor Paulson, but Paulson withdrew on Tuesday, citing his "complex financial obligations" that would prevent him from holding a role in the new administration.

Bessent met with the president-elect on Friday. He noted that he has known the Trump family for 30 years through a friendship with Donald Trump's late brother, Robert Trump. He contributed to Donald Trump's inauguration following his 2016 election win and has been more involved this time.

Advocating for tax reform and deregulation, particularly to spur increased bank lending and energy production, Bessent expressed these views in a recent opinion piece for The Wall Street Journal. He stated that the market's surge following Trump's election victory indicated investor expectations of higher growth, lower volatility, inflation, and a revitalized economy for Americans.

The relationship between Lutnick, CEO of New York-based Cantor Fitzgerald, and Trump spans decades. Trump supported Lutnick after 658 Cantor employees died in the September 11, 2001 attacks, as Lutnick rebuilt his firm by hiring thousands.

In August, Lutnick mentioned he was leveraging his Wall Street network to compile a list of candidates for potential administration roles, in his capacity as co-chair of the transition team.

According to online betting website Polymarket, Bessent is currently the leading candidate for Treasury Secretary at 68%, followed by Lutnick at 31%.