The Cantor Fitzgerald investment bank boss, a staunch supporter and friend of the president-elect for years, has reportedly failed to convince the Republican billionaire that he deserves the job of Treasury Secretary.
According to several American media outlets, including the Wall Street Journal, Donald Trump has finally selected Howard Lutnick as his future Secretary of Commerce, and not for the position of Secretary of the Treasury. As of mid-day Tuesday at Mar-a-Lago, no official announcement had confirmed the news.
Investment bank boss Cantor Fitzgerald, a staunch supporter and friend of Donald Trump for years, worked to convince the president-elect that he deserved the position of Treasury Secretary, which is the most important in the cabinet along with Secretary of State, i.e. Foreign Minister.
The duties of Secretary of Commerce essentially cover the promotion of American companies abroad and the regulation of exports, which would still make the 63-year-old Howard Lutnick an important player in the delicate negotiations that lie ahead with China and Europe. In recent months, he has distinguished himself by actively supporting threats to impose new customs duties on the United States’ partners, particularly China.
The US Trade Representative (USTR) is usually responsible for negotiating with US trading partners and assessing possible sanctions against them. The USTR is a small agency, separate from the Department of Commerce, but nonetheless very important.
Nice consolation prize
A native of Long Island, New York, Howard Lutnick became a Wall Street figure for having rebuilt the Cantor Fitzgerald firm, largely decimated by the attacks of September 11, 2001. He has been spending a lot of time at Mar-a-Lago in recent weeks, as he has been tasked by Donald Trump with shortlisting candidates for key positions in his future administration.
In recent days, the American press has reported Donald Trump’s annoyance at his friend’s zeal to recommend himself for the post of Treasury Secretary. Elon Musknow inseparable from Donald Trump, publicly endorsed Howard Lutnick as more “radical”, which seems to have offended others close to the president-elect. In this context, the Trade portfolio would be a nice consolation prize of sorts.
Scott Bessent, head of hedge fund Key Square Group, is another contender for the coveted post of Treasury Secretary. A former associate of George SorosScott Bessent, whose political views he strongly disagrees with, has been more nuanced in his support for plans for strong new tariffs to rebalance U.S. foreign trade and stimulate domestic investment and employment. Kevin Warsh, one of the governors of the Federal Reserve (Fed) from 2006 to 2011, is also considered a possible choice for the Treasury. He is considered equally credible by the markets, and has the experience needed in Washington to push forward Donald Trump’s ambitious program of deregulation and public spending cuts.