On Tuesday, President-elect Donald Trump nominated Howard Lutnick, CEO of investment bank Cantor Fitzgerald, as Secretary of Commerce.
Lutnick, who also serves as co-chair of Trump’s transition team, was previously considered a potential candidate for Treasury Secretary and was backed by Tesla CEO Elon Musk.
Until recently, Lutnick had been competing for the Treasury Secretary position with billionaire hedge fund manager Scott Bessent, favored by former National Economic Council (NEC) Chairman Larry Kudlow.
However, Trump ultimately chose Lutnick as the secretary of commerce.
Earlier, CNN reported, citing sources, that Trump had selected Lutnick as Commerce Secretary and informed other candidates.
The Secretary of Commerce supports U.S. businesses, negotiates trade agreements with foreign countries, and oversees foreign investments.
While not as prominent as the Treasury Department, it remains a key federal economic agency.
The department oversees 13 bureaus, including the Census Bureau, which manages major economic indicators such as Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) price indexes. The National Oceanic and Atmospheric Administration (NOAA) and the Patent and Trademark Office also fall under the Commerce Department’s purview.
The Commerce Secretary advises the President on economic policy alongside other economic department heads.
According to CNN, Linda McMahon was widely believed to be the frontrunner for the Commerce Secretary position, but it was recently reported that Lutnick had been chosen for the role. Robert Lighthizer, the former U.S. Trade Representative (USTR) who also vied for the Commerce Secretary role, will likely be reappointed as USTR.
McMahon, who served as the Administrator of the Small Business Administration (SBA) from 2017 to 2019 during Trump’s first administration, was considered a strong candidate for Commerce Secretary.
Notably, she has co-led Trump’s transition team with Lutnick over the past few months, focusing on supporting the policies rather than managing Trump’s private matters like Lutnick.
Reports indicate McMahon was taken aback when Trump did not nominate her for Commerce Secretary last week.
