'Knife Fight' US Treasury Secretary, Who Exactly?…CNN "Expected to Nominate on the 20th"

Donald Trump, the President-elect of the United States, is expected to nominate the Secretary of the Treasury, who will lead economic policy in his second administration, on the following day, the 20th (local time). After his election victory, Trump has been quickly announcing high-level appointments, but he has been deliberating extensively over this particular position.

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On the 19th, CNN cited multiple sources reporting that all candidates have completed interviews with Trump and his transition team. The sources said, "No decision has been made yet," but they expected the nomination announcement to come the next day.

Initially, Trump was expected to start revealing senior economic team appointments beginning with the Treasury Secretary last week. However, the nomination was delayed as competition intensified between the leading candidates, Scott Bessent, CEO of Kysquare Group, and Howard Lutnick, CEO of Cantor Fitzgerald, to the point where it was described as a "knife fight." Local media reported that Trump became frustrated during this process and that it became increasingly likely that neither would be nominated, leading to consideration of new candidates.

However, with Lutnick, who serves as co-chair of the Trump transition team, being appointed as Secretary of Commerce for the second administration on the same day, sources said the remaining appointments are expected to proceed quickly and smoothly. The three candidates currently under consideration by Trump for Treasury Secretary are Kevin Warsh, former Federal Reserve (Fed) Board member; Mark Rowan, CEO of Apollo Global Management; and Senator Bill Hagerty.

The previous day, Bloomberg News reported that Trump had offered the position of Chair of the White House National Economic Council (NEC) to Bessent, who was initially a leading candidate for Treasury Secretary, while considering Warsh as the next Treasury Secretary. Warsh, 52 years old this year, is a financial expert from Morgan Stanley and was also a leading candidate for Fed Chair during Trump’s first administration. He is also known domestically for serving as a director of Coupang Inc., the parent company of Coupang.

Rowan, CEO of asset management firm Apollo Global, has received favorable reviews from Trump’s close associates. However, local media pointed out that to be appointed to a cabinet position, he would need to leave Apollo to comply with public official ethics regulations, including conflict of interest prevention, which could be problematic. The final candidate, Senator Hagerty, is a co-founder of the private equity investment firm Hagerty Peterson & Company. He is recognized not only for his Wall Street experience but also for handling many economic-related bills such as tax reform and economic growth as a senator.

The Secretary of the Treasury, fifth in the presidential line of succession, oversees the $28 trillion national debt market, more than 40 economic sanctions programs ranging from trade to banking, and more. Especially in Trump’s second administration, the Treasury Secretary is expected to play a leading role in the trade war, including implementing up to 20% universal tariffs and high tariffs on 60% of Chinese imports. Accordingly, Trump’s advisors are reportedly seeking commitments from Treasury Secretary candidates regarding tariff increases. After deciding on the Treasury Secretary, Trump is expected to finalize the economic team appointments, including the NEC Chair, Secretary of Commerce, and U.S. Trade Representative (USTR).