US Markets

As Dow closes in on 20K, Trump's Cabinet picks reassuring markets: Art Cashin

Cashin: There will be a 'sigh of relief' after 20,000

President-elect Donald Trump's uncertainty factor had faded slightly with his Cabinet picks, giving markets high expectations and a positive outlook for the new administration, UBS' Art Cashin told CNBC on Tuesday.

"I think what you're really seeing here is that Trump was to some degree an unknown quantity. What would he do, shoot from the hip?" Cashin, the director of floor operations at the New York Stock Exchange, told "Squawk on the Street."

"But the people that he's putting in or nominating for these roles are highly professional. You may not agree with what their status is, but each one is very, very capable, and that has reassured the market in many ways," Cashin said.

Trump's nominations have reinforced calls for tax reform and deregulation, calming worries in the market that the president-elect's policies would not pan out as planned, Cashin said.

Still, policies are easy to tout but difficult to implement, and Cashin said that any member of the new administration that struggles may be subject to Trump's no-nonsense management philosophy.

"To some degree, the Trump administration may be a slight variation of 'you're fired,' because these guys are coming in and if they don't do the job, I don't think it will take him long to pull the trigger and move somebody out," Cashin said.

"He has high expectations and he wants it done and I think the market believes that too," Cashin added.