President-elect Donald Trump is considering Treasury secretary candidates for his second administration as the markets assess how Trump's tariff rhetoric on the campaign trail will play out in the Oval Office.

LPL Financial chief economist Jeffrey Roach joins Catalysts Hosts Seana Smith and Madison Mills to discuss what commentary from former Soros Fund Management investing chief Scott Bessent, who is in consideration for Trump's Treasury secretary, signals.

Bessent told the Yahoo Finance team in a July interview: "We hear 60% tariffs on China. That's the beginning of a maximalist negotiating position. That's the way President Trump negotiates. I would be surprised if we ever hit that. But, I think, given his record in Trump 1.0, he has a lot of credibility in using tariffs to negotiate."

Roach says "it's absolutely true that the rhetoric doesn't always translate into some action. So there's certainly going to be hot rhetoric."

The economist continues, "The second thing that's really interesting is the fact that China and the US are in very different situations right now, [in] 2024, relative to where they were 2017, 2018 ... When you think about a tariff, who's going to pay for the tariff? Well, it's either the consumer or it's the importer, the domestic importer here in the US or part of the burden is going to be paid by the foreign producer overseas. I think the scenario now probably puts less pressure on the end consumer [and] more pressure on the foreign producer overseas given the macro landscape."

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This post was written by Naomi Buchanan.