United States (US) Treasury Secretary Scott Bessent told Fox Business Network on Thursday the fact that the two-year US Treasury bond yield is below the federal funds rate is a signal that the Federal Reserve (Fed) should cut rates, per Reuters.
Key takeaways
“Tariffs situation with China will be a multistep process.””
“We need to see a deescalation with China on tariffs.”
“China needs to rebalance.”
“If the US, China could rebalance together, that would be a big deal.”
“Chinese economy is slowing down substantially, we will likely revisit Trump’s phase 1 trade deal.”
“We’re going to bring down China’s unfair trade barriers, hold China to its prior commitments.”
“If holiday orders not placed, could be devastating for China.”
“Had very good meetings with Indonesian finance minister.”
“We’re going to bring down European digital services taxes.”
“Will lessen uncertainty on tariffs every day and every week.”
“We expect to see GDP revised.”
“GDP decline may have been due to inventory stocking of imports.”
“US household consumption is strong.”
Market reaction
The US Dollar (USD) Index holds its ground following these remarks and was last seen rising 0.25% on the day at 99.90.
