Pete Hegseth’s bid for Defense Secretary is crumbling.

This week, he met with Republican lawmakers on Capitol Hill, but misconduct allegations are hanging over him like a dark cloud.

President-elect Donald Trump’s team, meanwhile, is racing to assess the stance of female Republican senators. With a razor-thin Senate majority, their votes are all-important.

Yet, Trump himself isn’t picking up the phone for Hegseth as he’s done for other nominees.

Sources say he’s frustrated with Hegseth’s lack of honesty about challenges that might arise during Senate confirmation hearings.

But Hegseth still insists he has Trump’s backing…

Nonetheless, the response from Republican women senators has been tepid. At best.

Your Rundown for Friday, December 6, 2024...

Trump Picks New Defense Secretary?

Senator Marsha Blackburn (TN) supports Hegseth; others like Senators Shelley Moore Capito (WV) and Susan Collins (ME) are undecided.

But Senator Joni Ernst (IA) — a key player on the Armed Services Committee — has notably withheld her endorsement.

As sexual misconduct allegations continue to pile up, alongside allegations of alcoholism, Hegseth’s chances seem improbable.

And while Trump’s enthusiasm for Hegseth evaporates, he now might favor someone who can only be described as a “frenemy.”

Trump appointing Florida Governor Ron DeSantis to Secretary of Defense would be a strategic move that could benefit both politicians.

With his second term as governor ending in 2026, Trump’s appointment offers DeSantis a path to remain politically relevant and position himself for a 2028 presidential run.

The Defense Secretary role would keep him in the national spotlight and allow him to implement some of his military priorities, including eliminating diversity initiatives and reinstating service members who refused COVID-19 vaccines.

For Trump, selecting DeSantis could solve multiple problems…

• Florida’s governor, already having been vetted during his presidential campaign, might face an easier confirmation process.

• Additionally, appointing a former rival demonstrates Trump's ability to unify the GOP.

• Most importantly, DeSantis' military background as a Navy veteran and his experience as a two-term governor of a large state make him a credible candidate for the position.

His actions as governor also align with Trump’s policy priorities, such as deploying the Florida state guard to the border and organizing rescue missions in Israel after the Oct. 7, 2023 Hamas attack.

The appointment, however, isn’t without risk. Some Trump allies are wary of bringing DeSantis into the administration, citing DeSantis’ past treatment of Trump staffers (most notably, Susie Wiles, Donald Trump’s incoming White House chief of staff).

There's also speculation that Trump might be floating DeSantis’ name to gauge reaction or even undermine him. Still, DeSantis has a few tricks up his sleeve…

For instance, he's now tasked with appointing replacements for up to eight political vacancies in the Sunshine State, including Marco Rubio's Senate seat, Matt Gaetz’s House seat as well as the state's CFO Jimmy Patronis.

And if he leaves for Washington, DeSantis’ impact would continue: His loyal ally, Lt. Gov. Jeanette Núñez, would become governor in his stead until the election in 2026.

In Florida’s political landscape (and possibly beyond), Governor DeSantis will retain significant influence because potential “king-making” appointments could shape Florida's future for decades and cement DeSantis’ legacy.

Market Rundown for Friday, Dec. 6, 2024

S&P 500 futures are just slightly in the red at 6,080.

Oil is down 0.90% to $67.67 for a barrel of WTI.

Gold is up 0.40% to $2,658.50 per ounce.

And Bitcoin’s pulled back to $98,570.