President-elect Donald Trump picks ex-Goldman Sachs Steven Mnuchin to lead the U.S. Treasury Department and billionaire Wilbur Ross for the Commerce, and Wall Street breathes a sigh of relief, says an analyst. Bobbi Rebell reports.
President-elect Donald Trump made his picks for the Treasury and Commerce departments. Former Goldman Sachs banker and Trump's campaign's finance director Steven Mnuchin has been tapped for Treasury. And billionaire investor Wilbur Ross will lead the Commerce. Cary Leahey of Decision Economics says, Wall Street breathes a sigh of relief. (SOUNDBITE) CARY LEAHEY, SENIOR ADVISER AND CHIEF U.S. ECONOMIST, DECISION ECONOMICS, (ENGLISH) SAYING: "I think these are relatively safe choices. You know, the president likes to pick people he's comfortable with, people who got into the bunker with him, and, like every president, he's loyal, and he wants to reward that loyalty he's not willing to go outside his inner circle for the moment. And he is picking people that have been successful, let's not deny that." Steven Mnuchin's priorites are tax reform and trade pact overhauls. He also wants to remove Fannie Mae and Freddie Mac from government ownership, and is aiming a sustained pace of three to four percent economic growth. Both, Mnuchin and Ross have criticized the financial reform legislation known as Dodd-Frank, passed after the 2008 financial crisis- so there could be changes there. Asked on CNBC about Federal Reserve Chair Janet Yellen's performance, both men said they believed she had done a good job, with Ross adding he believes the Fed will raise interest rates in December.