CNBC Daily Open: U.S.-China meeting in focus while Trump wants to rename the Strait of Hormuz

In June, the White House began reviewing possible successors to U.S. Deputy Secretary of Defense Steve Feinberg, according to Reuters. The potential replacements were examined by senior senators, who weighed their chances of garnering enough votes for confirmation. As of late August, the process remained ongoing, with no decision yet made to remove Feinberg.

The White House denied the report, while Defense Secretary Pete Hegseth expressed full support for Feinberg and stated he would not be leaving his position. This potential change would be the most significant in the Pentagon's leadership during a period of elevated turnover. Other senior departures include Army Secretary Dan Driscoll, who resigned amid tension with Hegseth, and Navy Secretary John Phelan, among others.

Feinberg, a billionaire co-founder of private equity firm Cerberus Capital Management, was appointed by President Trump last year. He has focused on accelerating U.S. weapons production, a task that has gained prominence as the ongoing war in Iran depletes American weapons stockpiles. Analysts have noted that the U.S. defense industrial base struggles to rapidly ramp up production, citing delays in congressional funding.

In an August memo to defense contractors, Feinberg emphasized the need for faster production and greater transparency in pricing. He also advocated for increased direct Pentagon investments in companies and loans to military contractors. However, Feinberg has faced scrutiny over potential conflicts arising from Cerberus and Pentagon spending on the Golden Dome missile defense program.

The Pentagon confirmed that Feinberg had fully divested from Cerberus and recused himself from government discussions or business involving the firm.