Written by: Svea Herbst-Bayliss and Alexandra Ulmer

(Reuters) – Billionaire banker Howard Lutnick has emerged as a serious contender alongside investor Scott Bessent for the top Treasury job in the new Trump administration, two sources familiar with the matter said, as the race for the high-profile role heats up.

Lutnick, a longtime friend of Trump and co-chairman of the transition team, has the support of at least one influential member of President-elect Donald Trump’s inner circle for the Treasury Secretary role, one of the sources said.

Bessent, who served as an economic advisor as well as a fundraiser for the Trump campaign, remains one of the top candidates, said the sources, who requested anonymity when discussing their positions ahead of their announcement.

While sources say the race appears to be narrowed to two for now, it’s possible other serious challengers could emerge once Trump finally decides who he wants.

“President-Elect Trump is deciding who will serve in his second administration,” said Trump-Vance Transition spokeswoman Karoline Leavitt. “These decisions will be announced when they are made.”

Lutnick’s spokesman declined to comment. A representative for Bessent did not immediately respond to a request for comment.

Since his victory on November 5, Trump has announced a number of picks for key roles in his second presidency, which he will take office in January. Analysts have said so far he has chosen loyalists who are unlikely to back down against his most controversial orders.

The Treasury Secretary role is one of the most high-profile cabinet posts, overseeing the nation’s financial and economic policy. Therefore, it is one of the key roles followed by global investors and Wall Street.

Several names have been reported by Reuters and other media as possible candidates for the job in recent days, including billionaire investor John Paulson, FOX Business Network personality and Trump advisor Larry Kudlow, Trump’s former U.S. trade representative Robert Lighthizer, and former Securities and Exchange Commission Chairman . Jay Clayton.

Kudlow did not immediately respond to a request for comment. Lighthizer could not immediately be reached for comment. Asked earlier Wednesday about his plans to join the Trump administration, Clayton declined to comment on specifics but said: “If I’m asked for a role where I can be effective, I’ll say yes.”

Last week, sources said Paulson and Bessent emerged as leading candidates for the job.

A source close to the Trump transition team said Trump was initially receptive to Paulson. But Paulson withdrew from the race on Tuesday, saying his “complex financial obligations” would prevent him from serving in the new administration.

Bessent met with the president-elect on Friday. Bessent said he has known the Trump family for 30 years, thanks to his friendship with Donald Trump’s late brother, Robert Trump. He contributed to Donald Trump’s inauguration following his 2016 election victory and has become more involved this time around.

He has advocated for tax reform and deregulation, particularly to encourage more bank lending and energy production, as noted in a recent opinion piece he wrote for The Wall Street Journal.

He wrote that the market’s rally after Trump’s election victory signals investors’ “expectations of higher growth, lower volatility and inflation, and a revitalized economy for all Americans.”

The relationship between Lutnick, CEO of New York-based Cantor Fitzgerald, and Trump also spans decades. After 658 Cantor employees died in the September 11, 2001 attacks, Trump offered support to Lutnick as the CEO rebuilds the firm by hiring thousands of people.

He told Reuters in August that he used his network from his career on Wall Street to curate a list of thousands of candidates to serve in a potential administration as part of his role as co-chair of the transition team.

According to online betting site Polymarket, Bessent leads the Treasury Secretary candidate with 68%, followed by Lutnick with 31%.

(Additional reporting by Chris Prentice, Lawrence Delevingne, David Lawder, Karen Freifeld and Echo Wang; Editing by Megan Davies, Paritosh Bansal and Lincoln Feast.)