Comments from Bessent:
- Trump, China’s Xi have very good relationship
Xi has not called Trump, this is absurd b/s from Bessent.
Now onto some of his more reasonable comments, open for dispute but not necessarily intentionally deceptive like that one above.
- Tariffs on China are big numbers, no one thinks they’re sustainable and wants them to remain
- Tariffs on China are not a joke
- Don’t think there’s a dumping of U.S. assets in bond market
- This is one of those occasional shocks you get in the trading community
- Have no evidence that sovereign investors are dumping U.S. assets
- U.S. is still a global reserve currency
Bessent also discussing one of the US’ independent officials who is under threat:
- Thinking about a successor for Powell, will start interviewing candidates in the Fall
On the face of it this is an encouraging comment. there is plenty of speculation about that Trump will fire Powell (yeah, I know this is illegal but Trump has deported an innocent man to El Salvador, the Supreme Court has ruled 9-0 that this is illegal and to bring him back, Trump is refusing to do so … so firing Powell would seem to be small potatoes). Powell’s term ends in May 2026.
This article was written by Eamonn Sheridan at www.forexlive.com.