U.S Treasury Secretary Bessen Remarks on U.S Economy. USDIDX Trims Early Loses

US Treasury Secretary Bessen commented today to the US economy and tariffs. Here is the breakdown. Also, Mexico president Sheinbaum commented that the country is close to the ‘deal’ with the US by next Tuesday.

US Treasury Secretary Scott Bessent

• I will come up with a list of industries that need to have secure supply chains, including chips and medicines.
• Australia funds have a preferred status with the CFIUS. I advocate for a 3% fiscal deficit-to-GDP ratio.
• Bank regulations have pushed borrowing to an unregulated financial system but does not see a stability problem.
• I aim to reduce spending and ease monetary policy at the same time.
• Government jobs don’t generate real long-term wage growth.
• Trump wants to diversify the sourcing and processing of critical minerals, Australia can play a role.
• Asked about trade relationship with Australia, Bessent said: ‘So far so good.’
• We will examine China’s non-tariff barriers and currency policies in reciprocal tariffs’ analysis.
• China really needs more consumption (…) China is likely to continue to add to its economic imbalances.
• The government debt plan is well positioned for several quarters.
• Term premiums should contract as the market gains confidence in the long-term fiscal profile of the US government.
• I am paying particular attention to the 10-year treasury yield, I believe Trump’s policies should reduce it.
• Tariffs are an important source of revenue and can help manage imbalances in other economies.
• Tariffs are the essential component in strategy and can increase US industrial capacity.
• We must swap economic growth from government to the private sector.
• The US data suggests financial health is concentrated at the top of the economic spectrum.
• The US economy is brittle underneath due to excessive spending by the Biden administration.

Mexico’s President Sheinbaum

• There have been no trade conflicts with the US that could derail a possible deal ahead of the tariff deadline next week.
• My Plan B remains in place in the event that the US government slaps tariffs on Mexican goods next week. I aim to close a tariff deal with the US by next Tuesday.
• My government continues to talk with the US government on security and trade, with one week to go before the tariff pause deadline.

BofA CEO, Moynihan

• Private credit hasn’t been tested in stress times.
• The BofA predicts no further rate cuts this year, or into next year.
• Regulations shouldn’t swing with US administrations.

The US Dollar Index (USDIDX) recovered after loses, fuelled by lower than expected US Consumer Confidence February reading.

Source: xStation5

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