As Donald Trump prepares for his second term as president, speculation swirls over who he will choose to fill the key position of Treasury secretary.
Stephen A. Myrow, founder and managing partner of Beacon Policy Advisors, an independent policy research firm, said Trump likes people out of “central casting,” and would prefer someone from Wall Street as his secretary of the Treasury.
Two names circulating currently are Scott Bessent, formerly a money manager for George Soros's hedge fund, and John Paulson, also a hedge fund manager who shut his fund and formed a family office. Both are also donors to Trump.
Myrow, who himself served as a senior member of Treasury Secretary Henry M. Paulson Jr.'s staff from 2008-2009, also said Trump’s new Treasury Secretary will primarily focus on tax reform issues during the first year of the new administration.
Indeed, Trump has said he wants to extend almost all the provisions of his own landmark 2017 Tax Cuts & Jobs Act legislation, which is set to expire at the end of 2025. He also wants to slash the corporate tax rate to 15% from the current 21% level and has proposed slapping a tariff of between 10% and 20% on most foreign imports, with much higher tariffs of 60% on goods imported from China.
In addition, Trump has proposed eliminating federal income taxes on Social Security benefits, on overtime pay and on tips for workers like waiters.
Myrow noted that whoever Trump selects for this key position will likely sail though the confirmation process, given the U.S. Senate now has a Republican majority.
While his name has been floated as a potential Treasury secretary, Jamie Dimon, the longtime chairman and chief executive officer of J.P. Morgan Chase, reportedly denied the speculation and said he will remain at the bank as long as possible.
In an earnings call with analysts on Oct. 11, Dimon was asked if he would like to serve in the next presidential administration (of either Harris or Trump), and replied: “I think the chance of that is almost nil, and I probably am not going to do it. But, yes, I've always reserved the right,” adding, “I love what I do. I intend to be doing what I'm doing. I almost guarantee I'll be doing this for a long period of time, or at least until the board kicks me out.”
A source confirmed to P&I that Dimon does not intend to leave J.P. Morgan Chase and feels that he can best support economic growth and community development in his role as J.P. Morgan CEO. J.P. Morgan Chase has $3.9 trillion of assets under management.
David Bahnsen, chief investment officer of The Bahnsen Group, which has more than $6 billion in assets, thinks Trump will pick Bessent as his Treasury secretary. Bessent, Bahnsen noted, is “ideologically grounded, smart, experienced, and suited for the job.”
Trump has praised Bessent, the founder, chief executive officer and chief investment officet of macro investment firm Key Square Capital Management and a top fundraiser for the president, as “one of the most brilliant men on Wall Street, respected by everybody.”
Bessent was formerly a supporter of Democrat Al Gore and was long associated with billionaire investor George Soros, serving as Soros Fund Management’s chief investment officer from 2011 to 2015.
“I do not believe Jamie Dimon will get consideration but I would love to see that (happen),” Bahnsen added. “I pray it will not be (Robert) Lighthizer, and hear through my sources he is more in conversation for (the) Commerce secretary (role). (Lighthizer’s) protectionism would be undesirable in the Treasury Department.”
Lighthizer, who served as U.S. trade representative during Trump’s first term, is reportedly telling money managers on Wall Street that Trump will implement his aggressive tariff regime immediately after taking office.
As for billionaire hedge fund manager Paulson, Bahnsen said “he was quite supportive of (Trump), but I do not see him as one having the political chops for this position.”
Paulson, a longtime Trump supporter, reportedly plans to help Tesla CEO and Trump ally Elon Musk cut federal spending, including efforts to eliminate green energy subsidies in Inflation Reduction Act. which was signed by Joseph Biden in 2022. Paulson is also reportedly committed to extending Trump’s 2017 tax cuts.
