Trump's Second-Term Cabinet Discards Biden Administration Policies
Expected to Appoint Loyal Figures
Department of Homeland Security and Justice Department to Oversee Illegal Immigration Policy
Department of Energy Anticipated to Undergo Major Changes with Fossil Fuel Revival
Government Efficiency Committee Likely to Include Elon Musk
New Fed Chair for Independent Government Agency Also in Focus
With former U.S. President Donald Trump, a Republican, elected as the 47th president, attention is focused on the key figures who will lead the White House and cabinet during his second term. As Trump is expected to overhaul many policies of the previous Biden administration and pursue policies based on "America First," many analysts believe he will appoint loyal individuals who can align with this agenda.
According to the Wall Street Journal (WSJ) on the 6th (local time), Tom Homan, former Acting Director of Immigration and Customs Enforcement (ICE), is a leading candidate to head the Department of Homeland Security, which will oversee large-scale deportation policies targeting illegal immigrants during Trump's second term. Homan strongly criticized Democratic Vice President Kamala Harris's border policies during the election and is also the founder of the nonprofit organization "Border911," which raises awareness about the severity of U.S. border issues.
Additionally, candidates for Attorney General, responsible for enforcing federal criminal laws related to immigration and drugs, include U.S. Senator Mike Lee (Utah) and former Missouri Attorney General turned Senator Eric Schmidt (Missouri). Doug Burgum, Governor of North Dakota, is a potential candidate for Secretary of Energy, where many policy changes are expected due to Trump's fossil fuel energy revival pledge. Burgum was also mentioned as a possible running mate for Trump.
For Secretary of Defense, Mike Pompeo, former Secretary of State who served in Trump's first administration, is reportedly the most strongly discussed candidate among Trump's close associates. Candidates for Secretary of State include Rick Grenell, former U.S. Ambassador to Germany, and Robert O'Brien, former White House National Security Advisor.
Billionaire Jamie Dimon, CEO of JP Morgan, was mentioned as a possible Treasury Secretary, but MarketWatch reported that Trump is considering two financial veterans: Scott Bessent, CEO of hedge fund Key Square, and John Paulson, billionaire hedge fund founder. In an interview with CNBC, Bessent emphasized that if appointed Treasury Secretary, his top priority would be gradually abandoning the Inflation Reduction Act (IRA), including electric vehicle tax credits.
Elon Musk, CEO of Tesla, is expected to head the Government Efficiency Commission, which is set to launch during Trump's second term. The commission is expected to reduce federal government spending and eliminate various regulations. Musk, who operates six businesses including Tesla, SpaceX, Neuralink, and xAI, is anticipated to focus on streamlining regulatory procedures to accelerate his ventures.
The Federal Reserve (Fed) is an "independent agency within the executive branch," but given Trump's history of opposing the Fed, there is interest in who will be appointed as the next Fed Chair. Unlike Trump, who stated before the election that there was no need for a rate cut, the Fed surprised markets in September by implementing a big cut (a 0.5 percentage point reduction in the benchmark interest rate), which displeased Trump. Jerome Powell's term as Fed Chair runs until May 2026.
The new Fed Chair is nominated by the president and confirmed by the Senate. Since the Republicans hold the majority in the recent Senate elections, it is expected that there will be no obstacles to appointing Trump's preferred candidate. Potential candidates for the next Fed Chair include Kevin Warsh, a former Fed Governor who has publicly criticized Chair Powell, and Kevin Hassett, former White House Senior Economic Advisor and one of Trump's most trusted aides during his first term.
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