Howard Lutnick, co-chair of Trump’s transition team, and hedge fund executive Scott Bessent are becoming increasingly involved in a fierce contest, both vying to become the next U.S. Treasury Secretary in the Trump administration, with their respective Wall Street factions working to undermine each other.
Currently, Kevin Warsh is advising Trump’s transition team on economic matters and is considered a potential candidate for the Federal Reserve chair in 2026.
Trump’s critics, including outgoing Utah Senator Mitt Romney, have stated he will "avoid commenting on any Treasury Secretary candidates" since he will soon return to private life. Romney’s associate, Mast, has indicated Lutnick is “my choice,” though without further elaboration.
On Monday, several financiers supporting Trump’s campaign moved to derail Lutnick’s candidacy, questioning his qualifications for the position and accusing him of abusing his role as transition team leader to secure a job for himself.
Later that evening, Bessent was attacked after a document allegedly showing low returns from his hedge fund, Key Square Group, circulated in chat groups on Wall Street and beyond, casting doubt on his financial abilities. Bessent is known for earning significant profits for George Soros by shorting the yen and the pound.
One individual familiar with the intensifying competition described it as a "war of words" between Lutnick’s and Bessent’s camps. Others suggested the friction could reflect deepening divides within Trump’s inner circle.
The dispute follows two days after Elon Musk expressed support for Lutnick’s candidacy, posting that Lutnick would “actually bring about change,” contrasting this with Bessent, who would maintain the status quo.
Musk’s post triggered concern among some Wall Street executives, who favor Bessent as the more predictable candidate and believe Lutnick is out of his depth.
“Unfortunately… Lutnick is now abusing his position, putting his candidacy above others,” said someone close to Trump. “I believe the President won’t be pressured into choosing him — that would be a huge mistake.”
Another Wall Street Trump supporter described Lutnick as a “risk-taker,” pointing out that while he played a key role in supporting the Republican candidate’s White House campaign, he is unsuitable for a position with such vast influence over the world’s largest economy and global bond markets.
Interviews with Wall Street executives revealed growing opposition to Lutnick’s candidacy, making the battle for Treasury Secretary one of Trump’s most challenging appointments so far. He has appointed most of his proposed cabinet members at an astonishing pace over the past week.
A top Trump donor supporting Bessent claimed that Lutnick ran a "tough and conservative selection committee" that would ignore the President’s wishes, focusing on his own agenda. "The President won’t be manipulated anymore," the donor added.
The intense fight between Bessent and Lutnick initially centered on their positions on trade, particularly Trump’s plan to increase import tariffs.
A Trump donor supporting Lutnick stated that the Cantor Fitzgerald CEO and the President are “completely aligned” on tariffs, and their economic agenda of achieving "energy dominance." "President Trump and Lutnick are closely collaborating on these crucial initiatives."
To undermine Bessent on Monday, an anonymous individual circulated a report supposedly showing Bessent’s hedge fund had a poor performance record, revealing that Key Square posted losses in five of the past seven years, while such funds typically generate profits.
Top financiers supporting Bessent argued that he has the experience and credibility to implement Trump’s key economic principles. He has even won support from some previously opposed to him on Wall Street. A top Democratic donor said, “I hate Trump, but I love my country, and I want us to succeed… Bessent is someone we can all support.”
This intense battle for a top economic position has also forced Trump to broaden his list of candidates. Now, Trump’s Treasury Secretary candidates include former Federal Reserve Governor Kevin Warsh, Apollo Global Management private equity chief Mark Rowan, Tennessee Senator Bill Hagerty, and Trump’s former U.S. Trade Representative Robert Lighthizer.
Some Wall Street executives have welcomed Rowan’s potential candidacy, but have warned that it would be difficult for him to step down from managing a $700 billion asset management firm.
