Former U.S. Treasury Secretary Steven Mnuchin, who served in the previous Trump administration, has announced that he will not seek to join Trump’s new government. However, he is prepared to offer some advice, including on how to strengthen sanctions against Iran and Russia and how to control the growth of U.S. debt.
Mnuchin emphasized the importance of efforts to enhance American trade policy during an interview with Reuters on Sunday, stating that holding the Chinese government accountable to its commitments under the Phase One trade deal reached with the Trump administration in January 2020 is crucial for rebalancing U.S.-China trade. He pointed out that China has failed to fulfill those commitments.
Last Friday, Mnuchin remarked that serving as Treasury Secretary during Trump’s first term was a “memorable experience,” and he is willing to provide external advice. He expressed confidence in the incoming administration’s ability to make good choices but declined to disclose any potential candidates.
Reports from Reuters last Friday identified two prominent hedge fund investors as leading candidates for the Treasury Secretary position. They are Scott Bessent, founder of Key Square Group, and John Paulson, founder of Paulson & Co. Bessent has already met with Trump.
Mnuchin stressed the importance of all departments within the Trump economic team working closely together as a group, including the Treasury Department, the Department of Commerce, the Office of the U.S. Trade Representative, and the White House National Economic Council.
Drawing on his background as a former executive in Wall Street’s renowned investment bank and financial services company Goldman Sachs, Mnuchin highlighted the significance of financial market experience and strong management skills for a Treasury Secretary. He emphasized the wide range of economic domains the Treasury Department covers, from regulation and tax policy to international sanctions.
Regarding financial sanctions enforcement, Mnuchin emphasized the need for stronger actions to cut off oil revenues to Iran and Russia, pointing out that sanctions imposed on Russia in relation to the conflict in Ukraine have garnered headlines but not necessarily produced tangible results.
He suggested that the G7-mandated cap of $60 per barrel for Russian oil prices could potentially reduce Russian oil revenues but highlighted that Russia is still selling significant amounts of oil and gas.
Mnuchin proposed combining these measures with increased production of oil and gas in the United States and other Middle Eastern countries to offset the reduced supply from sanctioning Russia and Iran, thus maintaining price stability.
Mnuchin also addressed the issue of controlling the growing government deficit, expressing confidence that a balance could be struck between extending tax cuts and cutting discretionary and non-discretionary spending. He mentioned that increased revenue could be generated through robust economic growth and the tariffs implemented by Trump.
Following his government tenure, Mnuchin founded a private equity firm, Liberty Strategic Capital, and secured investments from Softbank Group and the sovereign wealth fund of the Emirate of Abu Dhabi, Mubadala.