Meet the Top 4 Contenders for Treasury Secretary

It has been two weeks since President-elect Donald Trump secured a second term, and he is slowly assembling his Cabinet.

Trump has unveiled several high-profile individuals to lead various departments, from Marco Rubio as secretary of State to Tulsi Gabbard as director of National Intelligence.

Of particular interest to Wall Street is the Treasury secretary, who would shape Trump’s economic vision.

Four names have been suggested as potential successors to Janet Yellen, the current head of the U.S. Department of Treasury.

Here are the top contenders being considered by the president-elect.

Scott Bessent

Bessent, 62, is the founder of global macro investment company Key Square Group and serves as Trump’s primary economic adviser. Over a decade ago, he achieved billionaire status alongside George Soros by betting against the Japanese yen.

Described by Trump as “one of the analysts on Wall Street,” Bessent is the frontrunner for leading the Treasury Department.

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He has been a vocal advocate of cryptocurrency and tariffs.

Addressing inflation concerns related to Trump’s tariff plans, Bessent mentioned on CNBC’s “Squawk Box” in October that the economic measure can be implemented gradually. He explained that higher prices could gradually emerge and be offset by disinflationary public policies.

The seasoned Wall Street investor also mentioned in an interview with the Financial Times that the president-elect’s strong trade stances can be moderated.

“My overall perspective is that ultimately, he is a supporter of free trade,” Bessent stated. “It’s about escalating to de-escalate.”

Last summer, during an interview with Fox Business, Bessent expressed his enthusiasm for Trump’s support of cryptocurrency, stating that it aligns well with the Republican Party.

“Crypto is synonymous with freedom, and the crypto economy is a lasting phenomenon,” Bessent remarked.

High-profile figures in the industry, including Kyle Bass, a hedge fund investor at Hayman Capital Management, have shown support for Bessent, believing him to be highly qualified for the role.

“Scott possesses a comprehensive understanding of markets, economics, people, and geopolitics unlike anyone I have encountered. The markets have already anticipated Bessent’s potential selection,” Bass wrote in a social media post on X on Nov. 13.

He was a prominent supporter of Trump during the campaign.

Like Bessent, Lutnick has been an advocate for several of Trump’s key economic initiatives, particularly tariffs.

At Trump’s rally at Madison Square Garden last month, Lutnick questioned, “When was America great?” and highlighted the economic success in the early 1900s, attributing it to tariffs and the absence of income tax.

Lutnick has also given numerous media interviews endorsing the benefits of tariffs, suggesting that they can generate revenue for the government and serve as a negotiation tool to enhance fairness in global trade.

“Do we profit from tariffs, or do we bring productivity back home, boosting our workers? It’s a win-win situation. I like both outcomes,” Lutnick stated on CNBC’s “Squawk Box” in October. “I believe we will earn revenue from tariffs, but most importantly, other countries will negotiate with us, leading to fairer trade.”

Lutnick recently received the endorsement of Elon Musk, who mentioned on X that Lutnick would bring about significant change.

“Bessent represents the status quo, while @howardlutnick will bring about change,” Musk stated on Nov. 16. “Maintaining the status quo is driving America towards bankruptcy, so change is necessary one way or another.”

Robert F. Kennedy Jr., chosen by Trump to lead the Department of Health and Human Services, declared that “Bitcoin will have no stronger advocate than” Lutnick.

“Bitcoin signifies freedom, acts as a hedge against inflation for the middle class, counters the decline of the dollar as the world’s reserve currency, and offers relief from a mounting national debt,” he responded to Bass on X.

According to Polymarket, Lutnick stands as the third potential successor to Yellen, with odds at 24 percent.

Kevin Warsh

Kevin Warsh, 54, has recently emerged as a potential nominee for Treasury secretary.

Formerly an investment banker at Morgan, Warsh served as an economic adviser to President George W. Bush from 2002 to 2006 and is currently part of Trump’s transition team, shaping economic policy and staffing.

During his tenure as a governor on the Federal Reserve Board from 2006 to 2011, Warsh played a key role in formulating the central bank’s response to the global financial crisis.

He was critical of then-Fed Chair Ben Bernanke’s actions, expressing doubt that the central bank could stimulate the economy and enhance the labor market by reducing long-term interest rates. Instead, he urged his colleagues to scale back on their monetary policy easing in September 2009.

Since then, Warsh has served on the board of directors at UPS. Additionally, he teaches at the Stanford Graduate School of Business and is a Shepard Family Distinguished Visiting Fellow at the Hoover Institution.

Following Trump’s victory in 2016, Warsh was considered a leading candidate to head the Federal Reserve (Fed).

Jerome Powell was eventually selected as the central bank chief. In an interview with CNBC, Kevin Warsh criticized the Fed’s lack of a “serious theory of inflation” and emphasized the importance of clarity in the central bank’s goals and reaction function. Warsh attributed the inflation surge to the central bank’s asset purchases in 2021 and 2022 following the pandemic. He suggested that the Fed should continue reducing its balance sheet to achieve price stability. Warsh is expected to succeed Powell when his term ends in 2026. Marc Rowan, CEO of Apollo Global Management, expressed support for Elon Musk’s proposed overhaul of the government, emphasizing the need for wholesale change. Rowan also criticized the Federal Reserve’s recent monetary policy decisions. Despite initial speculation, John Paulson confirmed that he would not be joining the incoming administration as Treasury secretary due to his financial obligations. Please rewrite the following sentence to make it more concise:

“John went to the store to buy some groceries and then stopped at the bank to deposit some money into his account.”

“John went to the store to buy groceries and then deposited money at the bank.”

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