Pete Hegseth remains in office as defense secretary amid ongoing Pentagon leadership turnover and friction over senior officer removals, including the recent resignation of Army Secretary Dan Driscoll. He continues to oversee U.S. military operations in the Iran conflict, conduct diplomatic engagements such as meetings with German and Australian counterparts, and advance budget and force posture reviews. Senate Republicans have raised concerns about the pace of changes and confirmation delays for replacements, yet the administration has shown no signs of replacing Hegseth before the midterms. Traders price the low likelihood of departure by October 31 on this pattern of continuity in a high-stakes national security role, where abrupt removal would require presidential action amid active policy demands.