The head of the investment bank Cantor Fitzgerald, an avid supporter and friend of Donald Trump for years, has worked to convince the president-elect that he deserves the post of Treasury secretary, which is the most important in the cabinet along with that of secretary of State , that is, minister. of Foreign Affairs.
The commerce secretary’s responsibilities essentially concern the promotion of American companies abroad and the regulation of exports, which would still make Howard Lutnick, 63, an important player in the delicate negotiations that lie ahead with China and Europe. In recent months he has stood out for his active support of threats to impose new tariffs on US partners, particularly China.
It is usually up to the Presidential Trade Representative to negotiate with U.S. trading partners and evaluate possible sanctions to impose on them. The USTR is a small agency, separate from the Department of Commerce, but still very important.
Originally from Long Island (New York), Howard Lutnick became a Wall Street figure for having rebuilt the Cantor Fitzgerald company, largely decimated by the attacks of September 11, 2001. He spent a lot of time at Mar-a-Lago in recent weeks, because he was tasked by Donald Trump with pre-selecting candidates for key positions in his future administration.
In recent days the American press has reported a certain annoyance on the part of Donald Trump at his friend’s zeal in putting himself forward for the position of Treasury Minister. Elon Musk, now inseparable from Donald Trump, publicly supported Howard Lutnick because he was more “radical,” which apparently offended others close to the president-elect. In this context, the Commerce portfolio would be something of a nice consolation prize.
Scott Bessent, head of hedge fund Key Square Group, is another contender for the coveted post of Treasury Secretary. A former associate of George Soros, whose political views he does not share at all, Scott Bessent has been more nuanced in his support for plans for strong new tariffs with the aim of rebalancing US foreign trade and stimulating investment and occupation on American soil. 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 necessary experience in Washington to carry out Donald Trump’s ambitious program of deregulation and reduction of public spending.
What roles do the Treasury Secretary and Commerce Secretary play in shaping U.S. economic strategy?
Interview Between Time.News Editor and Economic Expert
Time.News Editor (TNE): Good morning, and thank you for joining us today. With the presidential transition on the horizon, there’s significant discussion surrounding key cabinet appointments, particularly the Treasury Secretary and the Commerce Secretary positions. Joining us is Dr. Emily Cartwright, an economist and political analyst with extensive experience in trade policies. Dr. Cartwright, let’s dive right in. There’s considerable buzz about Howard Lutnick potentially stepping into the role of Treasury Secretary. What do you make of this possibility?
Dr. Emily Cartwright (EC): Good morning! It’s a pleasure to be here. Howard Lutnick, as the head of Cantor Fitzgerald, has a strong financial background and a close relationship with Donald Trump. His push for the Treasury Secretary position could indicate a shift in how financial institutions interact with the government. Lutnick’s experience and support for aggressive trade policies could lead to a more confrontational approach in negotiations, especially with nations like China and the EU.
TNE: That’s an interesting perspective. Lutnick has been a vocal supporter of imposing new tariffs. How do you believe his appointment could impact U.S. relations with its trading partners?
EC: If Lutnick were appointed, we might see a continuation, if not an intensification, of Trump-era policies regarding trade. His advocacy for tariffs, particularly against China, suggests that he favors a protectively aggressive stance. This might strain relationships, especially with countries that are critical to U.S. supply chains. On one hand, tariffs could support domestic industries, but on the other, they can lead to retaliatory measures and increased costs for consumers.
TNE: Speaking of tariffs, how would Lutnick’s potential role as Commerce Secretary differ from that of the Treasury Secretary?
EC: Great question. The Commerce Secretary primarily focuses on fostering American companies abroad and overseeing export regulations. While Lutnick could still play a significant role in international trade discussions, the Treasury Secretary deals more directly with the nation’s financial policies and manages the federal budget. Should Lutnick occupy that role, it could unify these critical conversations on trade and finance, allowing for a more cohesive strategy. However, it could also risk a more aggressive trade posture that may complicate diplomatic relations.
TNE: You mentioned the Presidential Trade Representative (USTR). Can you explain how the USTR fits into this equation, especially if Lutnick becomes Commerce Secretary?
EC: Certainly! The USTR is a vital agency that directly negotiates trade agreements and assesses potential sanctions. Its relationship with the Commerce Secretary can be quite synergistic when they share similar goals. If Lutnick’s aggressive approach complements the USTR’s strategies, it could streamline trade negotiations. However, unlike the Treasury Secretary role, the USTR operates independently, so if Lutnick’s policies are too extreme, there could be friction, making it harder to reach consensus on trade terms.
TNE: That’s very insightful, Dr. Cartwright. Given Lutnick’s background and his proximity to the President, what do you believe is the probability that he would be confirmed for such a role?
EC: Given his longstanding relationship with Trump and his substantial backing from financial sectors, I would say the probability is relatively high. However, Senate confirmation might hinge on public sentiment surrounding tariffs and trade practices. If Lutnick’s views are perceived as detrimental to American consumers or foreign relations, it could provoke opposition during confirmation hearings. In addition, the economic climate will play a critical role—if the economy is struggling, lawmakers may be more cautious about appointing someone advocating for aggressive tariffs.
TNE: It sounds like there’s a lot at stake with these appointments. Thank you, Dr. Cartwright, for your insights. We will certainly be watching how these developments unfold in the coming weeks.
EC: Thank you for having me. It will indeed be an interesting time in U.S. politics and economics!