U.S. Treasury official Bessent said inflation is now “very tame,” and there could be a possible interest rate cut in the near future. He noted that the Federal Reserve made a “gigantic mistake” in 2022 by raising rates too aggressively.
When asked about the speculation over becoming the next Fed Chair, Bessent responded, “I’ll do whatever the President wants, but I already have the best job in Washington.” He added that the Fed board appointee from January could potentially become the future chair.
On tariffs, Bessent said there has been no significant inflation from them so far, although a one-time price adjustment may occur. He warned that countries should be aware the U.S. could return to the tariff levels seen on April 2. Whether to extend tariff talks will be up to former President Trump, he added.
He also mentioned that a wave of trade deals could happen in the final week before the July 9 deadline.
Regarding housing finance, Bessent said any action on Fannie Mae and Freddie Mac will aim to ensure mortgage rates do not rise. He added that stablecoin legislation could be completed by mid-July, and that it could become a new source of demand for U.S. Treasury bonds.
Bessent also expressed confidence that the fiscal policy bill will move forward soon. He called it “a start” in managing U.S. debt and said the Republican budget bill will support economic growth while controlling spending.
Trump Slams Fed Chair Powell, Says U.S. Should Be Paying 1% Interest
U.S. President Donald Trump strongly criticized Federal Reserve Chair Jerome Powell, calling him “Too Late Powell,” and said the entire Fed Board should be ashamed. He claimed they have one of the most prestigious but easiest jobs in America and accused them of failing the country. According to Trump, their poor decisions have hurt the U.S. economy.
President Trump added that if the Federal Reserve had acted properly, the country could have saved trillions of dollars in interest payments. He said the Board members are just watching and not taking action, making them equally responsible. Trump insisted that the U.S. should be paying only 1% interest or even less.
President Trump wrote a hand-written note to Fed Chair Jerome Powell, saying:
“Jerome — You are, as usual, ‘Too Late.’ You have cost the USA a fortune — and continue to do so. You should lower the Fed Rate — by a lot! Hundreds of billions of dollars lost! No inflation!”
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