Trump's Surprise Defense Secretary Pick Pete Hegseth Jolts Wall Street

President-elect Donald Trump has spent the week following his election win penciling in cabinet picks. His choice for Defense Secretary, Pete Hegseth, is raising eyebrows.

The Pick: Hegseth was a co-host on Fox Corp‘s FOXA FOX “Fox & Friends,” Trump’s favorite television show.

The Minnesota native, an Iraq and Afghanistan War veteran, has never held a government position. Hegseth has been a strong supporter of Trump since 2016.

According to the Associated Press, Trump encouraged his supporters to buy Hegseth's book in June and said that if he won the election, "The woke stuff will be gone within a period of 24 hours. I can tell you."

Hegseth supports removing women from combat roles in the military, according to The Independent.

Why it Matters: Trump’s selection of Hegseth surprised many Wall Street observers, according to Barron’s. The television host was not on the radar of research analysts.

Trump announced plans Tuesday to appoint Elon Musk and Vivek Ramaswamy to form the “Department of Government Efficiency,” aimed to “cut wasteful expenditures.”

The sprawling U.S. military complex, which now comprises 13% of the federal budget at nearly $1 trillion, has been unable to pass an independent audit for the last six years, according to Reuters.

Wall Street is apparently not worried that Musk and Ramaswamy will gut military spending to federal contractors. The iShares US Aerospace & Defense ETF ITA has risen over 7% since Trump’s election win. General Dynamics Corp GD, Lockheed Martin Corp LMT and Rtx Corp RTX have posted gains in that period.

What’s Next: Several Democratic Party politicians including Senator Elizabeth Warren voiced disapproval of Trump’s pick, citing Hegseth’s lack of experience. The “Fox & Friends” anchor will face a confirmation hearing in the Senate following Trump’s inauguration.

Also Read:

• Trump Appoints Elon Musk And Vivek Ramaswamy To Lead ‘DOGE,’ Aiming to Slash Bureaucracy And $6.5 Trillion Federal Spending: ‘We Will Not Go Gently’

Photo courtesy of Wikimedia.