As Elon Musk publicly endorses a candidate for the role of Treasury Secretary under Donald Trump's administration, he has leveraged his social media influence to sway public opinion. Musk, who has become a significant figure in shaping Trump's economic team, has advocated for Howard Lutnick, the CEO of Cantor Fitzgerald, to be appointed to the position. This comes as Scott Bessent, the founder of Key Square, has been widely regarded as the leading contender for the role. Musk's statement on social media emphasized that while Bessent represents the status quo, Lutnick is poised to bring about real change. He urged his followers to voice their opinions to Trump, highlighting the need for a departure from conventional economic practices that he believes are detrimental to America's financial health.

Both Bessent and Lutnick are well-respected figures in the financial industry and have openly backed Trump's economic policies, including the controversial imposition of high tariffs that have been met with skepticism by mainstream economists. They have also shown support for cryptocurrencies, which Trump has recently endorsed despite initial reservations. Lutnick, who is part of Trump's transition team, is known for his more assertive and self-assured personality compared to Bessent, who embodies the calm and composed demeanor typically associated with the role of Treasury Secretary—a role that is often expected to provide stability to Wall Street during times of economic uncertainty.

For instance, Bessent expressed his support for Trump's policies in an op-ed, stating that tariffs are essential in protecting American interests. Lutnick, on the other hand, has been more vocal in his support, speaking at a pre-election rally and emphasizing the historical significance of tariffs in America's economic past. This has led some financial heavyweights to advocate for Bessent's appointment, with billionaire hedge fund investor Kyle Bass arguing that Lutnick lacks the temperament to lead the Treasury. Bass and others believe that Bessent's deep understanding of markets, economics, and geopolitics make him a more suitable candidate.

Despite the stylistic differences, market analysts suggest that Trump's intentions to impose widespread tariffs are clear, and the Treasury Secretary's influence on this policy may be limited. Scott Lincicome, vice president of general economics and trade at the Cato Institute, stated that Trump is likely to pursue his tariff agenda regardless of who holds the Treasury Secretary position, as there are multiple avenues available to him to achieve this goal.

If Trump follows through with his plans to impose comprehensive tariffs, deport millions of undocumented workers, and potentially influence the Federal Reserve, the next Treasury Secretary may face an inflation crisis. According to a working paper by the Peterson Institute for International Economics, these policies could lead to weakened growth, increased inflation, and reduced employment. Inflation could rise to at least 6% by 2026, with consumer prices increasing by 20% by 2028.

Both Lutnick and Bessent have questioned the mainstream economic predictions regarding the inflationary impact of Trump's policies. The contenders for the Treasury Secretary position have been engaged in intense behind-the-scenes efforts to secure this pivotal economic role. Initially, Trump seemed close to appointing Bessent, but Lutnick launched an aggressive campaign to position himself as the ideal candidate, emphasizing his full support for Trump's tariff promises.

As the competition intensified, with Bessent taking a more low-key approach compared to Lutnick's public campaign, tensions rose within Trump's team. Some even suggested considering other candidates, such as Tennessee Sen. Bill Hagerty or Larry Kudlow, a Trump loyalist known for his market-friendly views. However, Kudlow, who had previously served as Trump's director of the National Economic Council, declined the offer, citing health concerns following a mild heart attack in 2018.

Historically, Treasury Secretaries have been tasked with policies that strengthen the US dollar, promote economic growth, and maintain stability in the stock and bond markets, while also ensuring the stability of the tax base that funds federal operations. The role is particularly crucial in the upcoming Trump administration, given his campaign promises to impose significant tariffs on all imports and especially on Chinese imports.

The incoming Treasury Secretary will also need to address the debt ceiling in early January, work with Trump and congressional Republicans on extending the Tax Cuts and Jobs Act provisions set to expire in 2025, and oversee the Treasury Department's regular duties, which include managing trillions in payments, collecting taxes, selling US debt securities, and regulating the banking and finance industries. The Secretary also serves as the nation's finance minister on the global stage.

During his first term, Trump appointed Steven Mnuchin, a financier and Hollywood producer with no prior government experience, who served as the finance chairman of Trump's 2016 campaign. Mnuchin played a key role in implementing the 2017 tax cuts and various pandemic relief measures, including the distribution of stimulus checks to millions of Americans.