Scott Bessen warns China over currency movements
Treasury Secretary Scott Bessent has responded to China’s 84% tariffs on US goods, the state of China’s economy, and the potential backup plans for corporate America are closed in light of tariffs.
Treasury Secretary Scott Bescent On Wednesday, he said he didn’t see a systematic issue in the bond market amid the sector’s release, warning China that abandoning the US Treasury would violate China’s cheaper currency goals.
Bessent has appeared on Fox Business Network’s.”Morning with Maria“And he told host Maria Bartiromo that what’s going on with Treasury debt seems like a normal Derel removal and he hopes market concerns about its activities will sink as the process unfolds.
“I’ve seen it a lot in my career in my market. These des are happening in the market right now. “We have a very big leverage player.
“I believe there’s nothing systematic about this. I think what’s going on in the bond market is unpleasant but normal deleverage. When I see the leverage drops, I think the risk manager is putting it on my shoulder and telling me to beat the book.
Scott Bescent blows up China’s retaliatory tariff play as a loser move
Treasury Secretary Scott Bescent said he has not seen any systematic issues with deleveraging in the bond market. (Andrew Harnik/Getty Images)
Amid uncertainty over the Trump administration, Treasury yields have been shaky in recent weeks for 10 years Tax Planning. March began at around 4.2% and peaked at around 4.4% later last month, then fell below 4% on Thursday and Friday following Trump’s “liberation day” tariff announcement on April 2.
Bartiromo arrests Bestert Bond Market It’s whether the Chinese government, the US Treasury’s second largest foreign holder, has begun dumping bonds to put pressure on US financial markets.
“You know, Maria, if they abandon the Treasury, I think it’s against their purpose because if they abandon the Treasury, they have to buy something else.
China imports increase US tariffs from 34% to 84%
The US and China are expanding tariffs imposed on imports between the two countries. (Brendan Smialowski/AFP/Getty Images)
The Treasury Secretary said China’s efforts to reduce the relative value of the currency to support its large export markets are dynamics that it would be inappropriate to replace the US dollar as a global reserve currency because of its reliability.
“When I hear all these stories about the dollar not becoming a reserve currency, if I were to become a Chinese person willing to use currency as a trading tool, that doesn’t look like a very good reserve asset to me,” Bescent said.
The US dollar is strengthened Chinese Original Over the past few weeks, it has weakened against other major currencies, such as the Japanese yen and the euro, the European Union’s common currency.
European Union approves billions of retaliatory tariffs on US imports
Taxes are taxes on imports paid by import companies, and generally give consumers a higher cost at a higher price. (Sam Wolfe / Bloomberg Via / Getty Images)
Bessent was attributed to these changes Currency Market The economic situation and expectations of Europe and Japan. In particular, he noted that European NATO members planned to increase defence spending to counter Russia and Japan, thus promoting higher inflation expectations and higher interest rates.
“I want to repeat. The US has a strong dollar policy, some of which is overall. It’s bilateral, the dollar-to-euro, the dollar-to-yen part,” he said.
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“We will see an upgrade in the end, as Europeans are going to spend more on defense. European fiscal spending And to say “I will pay your fair share” is the pressure from the NATO president on the military alliance, which will bump into their economy. In Japan, the yen was strong, but that’s all natural because the Bank of Japan is raising interest rates because of the strong economic growth rate and high expectations of inflation,” explained Bescent.