The key battle for the Treasury Secretary in "Trump 2.0," "Minister Ma" speaks out! Supporters lead to a major sell-off on Wall Street this week?

As Trump's second term approaches, the competition for the key cabinet position of Secretary of the Treasury is becoming increasingly intense. Musk's public support for Trump transition team co-chair Howard Lutnick has "added fuel to the fire."

On November 17, Trump's two strongest allies, Musk and Robert F. Kennedy Jr., voiced their support for Lutnick to serve as Secretary of the Treasury on the social media platform X.

Musk stated that Lutnick is the candidate who can "truly bring about change," and referred to another major competitor, hedge fund CEO Scott Bessent, as "the status quo choice," claiming that he would "lead America to bankruptcy as usual, so change must be made."

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

Currently, the market seems to have made a judgment on the Treasury Secretary candidate. Hedge fund manager Kyle Bass stated:

"The market initially rose due to Trump's victory, but as Lutnick expressed interest in the Treasury Secretary position, the market saw a sell-off. The market seems to be telling Trump that Bessent is the more suitable candidate."

The Battle for Treasury Secretary Heats Up

Now, the battle for Treasury Secretary has become a proxy war for Trump's 2.0 direction. Among those inclined to adopt a more cautious approach, Bessent has clearly become a popular choice, while Lutnick has garnered support from many of Trump's staunch supporters.

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

Moreover, Musk, who is appointed to the "Department of Government Efficiency," maintains close ties with Lutnick. The two were spotted 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 mentioned in an interview regarding related plans, "Musk, Trump, and I will figure it out."

According to sources cited by The Wall Street Journal, Lutnick seems to have begun losing his campaign opportunities later this week, prompting Musk and Kennedy to publicly express their support. It is reported that Musk recommended to Trump that if Lutnick becomes Secretary of the Treasury, he would be able to collaborate better with financial institutions, including the large banks on Wall StreetAs one of Trump's main advisors during the campaign, Bessent has remained "low-key," becoming a major contender for the position in the final days of the campaign, frequently appearing in the media and writing columns to promote Trump's agenda. Other prominent Trump supporters and Wall Street figures have publicly expressed their support for him.

Bessent has also spent some time at Mar-a-Lago and met with the incoming president. Trump praised Bessent during the presidential campaign, calling him "one of the smartest people on Wall Street" and stating that "everyone respects him."

Investor Kyle Bass also believes, "Bessent is the top choice for Secretary of the Treasury. Lutnick should hold an important and great position, but the 'producer' should not become the 'leading role.'"

How will Trump choose?

The competition is fierce, but Trump has not shown any clear inclination yet. Trump's transition spokesperson Karoline Leavitt stated in a statement:

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

Analysts point out that the voices of these two "high-profile" allies have influenced public sentiment, putting pressure on Trump, and the relationship between Musk and the Treasury Secretary candidate could largely determine the success of budget reforms.

According to insiders, all these struggles sometimes frustrate Trump and his senior aides, prompting some close to him to wonder whether the incoming president will choose entirely different candidates. Other candidates discussed by Trump's advisors include Marc Rowan, CEO of Apollo Global Management