US Treasury Secretary Bessant Makes Special Statements on the Fed and Tariffs

In his latest interview, US Treasury Secretary Scott Bessent shared his views on the new trade agreement with Japan, relations with China, and the Fed.

Bessent announced details of the trade agreement with Japan. The agreement will implement a new 15% tariff on automobiles and will see Japan create an innovative financing mechanism to provide capital to strategic US industries. He noted that ongoing negotiations with the European Union are progressing slowly due to the “problem of joint action” among the 27 member states.

The minister said he hoped to move beyond issues like rare earths and export controls to focus on “bigger discussions” at his meeting with his Chinese counterparts in Stockholm. Bessent spoke of the potential for a “big, beautiful rebalancing” where the US focuses on production and China on consumption. He also suggested that a new purchasing agreement similar to the Phase One agreement from the previous administration is possible.

Bessent stated that he believes the Fed’s analysis of the tariffs is “a bit off” and that he sees no price pressure from them. He stated that he believes current Fed Chair Jerome Powell should step down to preserve the institution’s independence. He also explained that President Trump’s strategy of using high tariffs is aimed at creating “maximum negotiating leverage,” and that his actions, while not always immediately apparent to the market, are part of a plan.

*This is not investment advice.