The secretary of the Treasury, Scott Besent, said Wednesday that the US is moving towards commercial agreements with key allies that will form the basics for a united economic front against China, while discarding the fears of a financial crisis as “nothing systemic.”
Speaking at the meeting of the American Banqueros Association in Washington, Besent presented the Trump administration strategy to press Beijing through coordinated economic diplomacy.
“We can probably reach an agreement with our allies,” Besent said. “They have good legs of legs, not perfect economic allies. And then we can approach China as a group.”
He warned Europe not to break ranges or retaliate against the tariffs of the United States.
“That would be to cut his own throat,” said Besent, highlighting Spanish officials who recently expressed interest in the closest economic ties with China.
The fantasy economy
Besent compared China’s model with a fugitive cartoon. “They continue to produce and produce, and dumping and dumping,” he said, compare the economy driven by China’s export with spell jokes in Disney’s FancyFlooding the global market.
China, Besent emphasized, is the only important country that increases after the new Round of Trump’s reciprocal tariffs. While others seek negotiations, including Japan, South Korea, India and Vietnam, Beijing has responded with monetary movements and retaliation levies.
Panic in the bond market? “Since normalvertent,” says Besent
Early in the day in Fox Business, Besent ruled out the recent volatility in the treasury markets, where the yields shot sharply during the night, as a cyclic cleaning of excessive leverage.
“In fixed income markets, there are some very large outwant players who have experienced losses,” he said. “They are having to disapprove … I think there is nothing systemic in this.”
He said that risk managers are already in the exhibition: “As the leverage decreases, and risk managers take advantage of people on the shoulders to demolish the books, then the market will calm down.”
10 -year treasure yield increased 4.5 percent in trade during the night before withdrawing slightly, which caused terrible warnings of critics of Trump’s commercial agenda. The former Secretary of the Treasury, Larry Summers, said that a “serious financial crisis” can be underway, “totally induced” by Trump’s tariffs.
Beart dismissed such warnings.
“There is a small uncertainty,” he said at the ABA event, but “we are in a very good shape.” The majority of the CEO with whom he speaks, he said, continues to describe the economy as “very solid.”