U.S. Secretary of the Treasury Bessant warned trade partners not to expand negotiations while expressing confidence in the stability of demand for U.S. government bonds and criticizing some decisions of the Federal Reserve.
In a recent meeting with EU negotiators, Bessant stated that without progress in negotiations, tariffs could return to the levels seen on April 2. He also pointed out the strength of the government bond market and emphasized the importance of prudent budget management.
MAIN CONTENT
Bessant warns of the risk of increased tariffs if trade negotiations stall.
The U.S. government bond market continues to have high demand, reflecting financial stability.
He criticized the Federal Reserve's interest rate management approach and emphasized the need for reasonable budget adjustments.
What warnings did U.S. Secretary of the Treasury Bessant give regarding trade negotiations?
Bessant clearly emphasized the urgent need for progress in negotiations, warning that tariffs may revert to the level imposed since April 2 if the parties do not reach an agreement.
Based on the report from July 3, U.S. Secretary of the Treasury Bessant confirmed that the temporary status of trade with EU partners and other countries depends on the outcome of negotiations. He also announced a direct meeting with EU negotiators that day, while candidly sharing: 'We will see what happens with the EU.'
What does Bessant say about the U.S. government bond market and public debt?
Bessant expresses deep confidence in the appeal of the U.S. Treasury market, despite the complex global economic context.
He stated that demand for U.S. bonds, both domestically and internationally, remains high, reflecting investor confidence in the safety and liquidity of this asset. He described the process of public debt management as very 'orderly,' helping to stabilize the national finances in the long term.
'There is a very high demand for U.S. government bonds, reflecting strong trust in the U.S. financial market.'
Jen Bessant, U.S. Secretary of the Treasury, speaking on July 3, 2024
What is Bessant's stance on interest rate policy and his assessment of the Federal Reserve?
Bessant leans towards the view that current overnight interest rates are too high and that inflation expectations need to cool down, based on the analysis of two-year Treasury bonds.
He criticized the Federal Reserve Executive Committee for being somewhat 'biased' in its evaluations while highlighting the Fed's role in controlling budgetary expenditures. Bessant hopes the Fed will make appropriate adjustments to the budget they manage to balance economic growth.
'Controlling expenditures is a positive point for the Federal Reserve, and I hope they will adjust the budget appropriately.'
Jen Bessant, U.S. Secretary of the Treasury, speaking in July 2024
How did Bessant respond regarding the possibility of replacing the Federal Reserve Chairman?
When asked whether he wants Fed Chairman Jerome Powell to resign, Bessant avoided giving a specific answer but emphasized the possibility of many outstanding candidates for the position.
He also emphasized the plan to add two member seats to the Fed's Executive Board next year, indicating that the leadership transition process is being carefully and transparently prepared.
What is the importance of budget management in U.S. financial policy according to Bessant?
Bessant values expenditure control as an important part of the Fed's economic management strategy, aimed at preventing inflation risks and maintaining national financial stability.
Adjusting the budget size not only helps reduce pressure on interest rates but also creates conditions for a sustainable business environment, contributing to strengthening international investor confidence.
Frequently Asked Questions
What does Bessant warn could happen if trade negotiations fail? Tariffs could revert to the levels of April 2, affecting international trade.
How is the U.S. bond market currently according to Bessant? Demand is high, reflecting strong confidence in the U.S. financial space.
What is Bessant's assessment of current overnight interest rates? He believes that overnight interest rates are too high and need to be adjusted down to align with inflation expectations.
Is there a possibility of leadership change at the Fed? There are many strong candidates; the Fed plans to add two member seats to the Executive Board next year.
Why is budget management emphasized by Bessant? Managing expenditures helps maintain economic stability, address inflation, and support sustainable economic growth.
Source: https://tintucbitcoin.com/thieu-thong-tin-tien-dien-tu-goc/
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