Billionaire investor John Paulson announced on Tuesday (November 12) that he will withdraw from the competition for the position of the US Treasury Secretary in President Trump’s new cabinet, shifting the focus to another major candidate, investor Scott Bessent.
Paulson, a former popular choice for the role of Treasury Secretary in President Trump’s administration, stated on Tuesday that due to the “complex financial responsibilities” he bears, he is unable to serve in this capacity in the new government.
According to The Wall Street Journal, Paulson said in a statement, “I intend to continue to be actively engaged in the President’s economic team and assist in implementing President Trump’s outstanding policy proposals.”
Wall Street has been closely watching for the selection of the Treasury Secretary in Trump’s new administration, especially as he has expressed plans to reshape global trade using tariffs.
Reuters reported that sources revealed last Friday (November 8) that Paulson and Bessent have emerged as the main competitors for this key position. The Treasury Secretary wields significant influence over the economy, regulation, and international affairs.
Both individuals have been financial supporters of Trump’s election campaign.
Bessent is a prominent economic advisor to Trump, having been involved in hedge fund investments for many years and taught at Yale University for several years, fostering a close relationship with the President-elect.
On one hand, Bessent has long supported the free-market policies popular within the Republican Party before Trump while highly praising Trump’s use of tariffs as a negotiating tool.
Paulson, on the other hand, is a billionaire investor and major donor to Trump, advocating for tax cuts and deregulation over the years. He publicly supports using tariffs as a tool to ensure national security and combat unfair trade practices.
In April, Paulson hosted a widely watched fundraising event, raising over $50 million for Trump’s election campaign.
Representatives for Bessent have not immediately responded to Reuters’ requests for comments.
Trump is set to return to the White House in January and has started intensively choosing cabinet members and senior officials for his new government.
One of Trump’s two campaign managers, Susie Wiles, has been appointed as his White House Chief of Staff. Linda McMahon, co-founder of World Wrestling Entertainment (WWE) and former president and administrator of the Small Business Administration, is seen as a leading candidate for Secretary of Commerce.
On Monday night (November 11), multiple US media outlets cited insiders who said President-elect Trump plans to nominate Senator Marco Rubio as Secretary of State.