Steve Mnuchin Image by Getty Images

Image by Getty Images

A rift has opened up in the Treasury Department between those who back the Republican Party’s traditional1 Wall Street-friendly policies and those aligned with White House chief strategist Steve Bannon’s economic nationalist agenda, according to insider administration sources.

“I think Gary and Steve (Mnuchin) view most of these things the same way and are pretty well aligned against some of the crazier ideas coming from Bannon and the rest,” an unnamed Wall Street banker close to The White House told Politico. He was referring to Mnuchin and Gary Cohn, head of the White House’s National Economic Council and the former chief operating officer of Goldman Sachs.

Forwarding the News

Thoughtful, balanced reporting from the Forward and around the web, bringing you updated news and analysis each day.

Terms(Required)

I agree to the Forward's Terms of Service and Privacy Policy

Email(Required)

What most divides the two wings of the administration appears to be free trade, which conservatives in the finance industry and elsewhere have typically supported, but which Trump (under the influence of Bannon) ran against during the campaign. According to Politico, Mnuchin has so far tried to thread the needle on the issue, offering qualified backing of free trade while acknowledging the cost that many feel it has on the domestic employment market.

That approach has managed to avert a full-scale war between the two camps for now, but the truce might break down as President Trump plans to pursue a full-bore overhaul of the federal tax-code. That might turn messy, as the president has promised to use taxes to reward and punish companies based on their commitment to hiring American laborers. Who will win? Stay tuned.

Contact Daniel J. Solomon at [email protected] or on Twitter @DanielJSolomon

A message from our Publisher & CEO Rachel Fishman Feddersen

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward’s award-winning, nonprofit journalism during this critical time.

The coming year promises to be filled with more complex and historic developments. We are entering an era where independent, fact-based Jewish journalism will be more important than ever. We need to be ready for whatever 2025 will bring, and with your help, we can be.

We’ve set a goal to raise $260,000 by December 31. That’s an ambitious goal, but one that will give us the resources we need to invest in the high quality news, opinion, analysis and cultural coverage that isn’t available anywhere else.

If you feel inspired to make an impact, now is the time to give something back. Join us as a member at your most generous level.

—  Rachel Fishman Feddersen, Publisher and CEO

With your support, we’ll be ready for whatever 2025 brings.

$36 $500

$120 $180 Other amount