As Trump's second term approaches, the battle for key cabinet positions, especially the Secretary of the Treasury, intensifies. Musk's public support for Howard Lutnick, co-chair of Trump's transition team, has "added fuel to the fire."

On November 17, Trump's two most powerful allies, Musk and Robert F. Kennedy Jr, voiced their support on social media platform X for Howard Lutnick to become the Treasury Secretary.

In this regard, Musk called him the candidate who can "truly bring change" and referred to another main competitor, hedge fund CEO Scott Bessent, as the "alteration-less choice," who would "continue to lead the usa towards bankruptcy, hence change must be made."

Analysis indicates that the role of the Treasury Secretary in Trump's second term will be crucial, overseeing financial markets, U.S. debt issuance, economic national security affairs, tax policies, and also the strength of the dollar. This position will play a core role in formulating the 2025 tax reform bill and may be a key interlocutor with foreign leaders in trade negotiations.

The market seems to have made a judgment on the choice of Treasury Secretary. Hedge fund manager Kyle Bass stated:

"The market initially rose due to Trump's victory, but with Lutnick expressing interest in the position of Treasury Secretary, the market saw selling. The market seems to be telling Trump that Bessent is the more suitable candidate."

The intense battle for the Treasury Secretary position

Now, the contest for the Treasury Secretary has become a proxy battle for Trump 2.0. Among some who tend to take a more prudent approach, Bessent has clearly become a popular candidate, while Lutnick has won the support of many die-hard Trump supporters.

According to POLITICO, billionaire and Cantor Fitzgerald's CEO Lutnick is a powerful broker on Wall Street, vying for this position and using his role in the transition team to control the flow of information related to the president in order to influence his personnel decisions.

Moreover, the 'Government Efficiency Department' designated by Trump, Musk, is in close contact with Lutnick, with the two having been photographed together at Mar-a-Lago meeting with Trump. Previously, Lutnick stated that he had extensive discussions with Musk on ways to cut government spending and in an interview involving related plans, he said, 'Musk, Trump, and I will come up with a solution.'

According to sources cited by The Wall Street Journal, later this week, Lutnick seems to have started losing his chances in the election, prompting Musk and Kennedy to make public statements. It is said that Musk had recommended to Trump that if Lutnick becomes Treasury Secretary, he would be better able to cooperate with financial institutions, including the big banks on Wall Street.

As one of the main advisors to Trump during his campaign, Bessent has remained 'low-key', becoming a major competitor for the position in the final days of the campaign, and appearing frequently in the media and writing columns to promote Trump's agenda. Other prominent Trump supporters and Wall Street figures have publicly expressed support for him.

Bessent has also spent time at Mar-a-Lago and met with the president-elect. Trump had praised Bessent highly during the presidential campaign, calling him 'one of the smartest people on Wall Street' and 'respected by everyone.'

Investor Kyle Bass also believes, 'Bessent is the ideal choice for Treasury Secretary. Lutnick should take up an important and great position, but the 'producer' should not become the 'star'.

How will Trump choose?

The competition is intense, but Trump has not shown a clear inclination yet. Karoline Leavitt, Trump's transition spokesperson, said in a statement,

"President-elect Trump is currently deciding who will serve in his second administration, which he will announce at that time."

Some analysts point out that the public's inclination has been influenced by the voices of these two "high-profile" allies, putting pressure on Trump. The relationship between Musk and the Treasury Secretary nominee may largely determine the success of budget reforms.

According to insiders, all these struggles sometimes make Trump and his senior aides feel frustrated, prompting some close associates to question whether the incoming president will choose completely different candidates. Candidates discussed by Trump's advisors also include Apollo Global Management CEO Marc Rowan.

Editor/Somer