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US Treasury Secretary Bessent declares bond markets calm

Untied States (US) Treasury Secretary Scott Bessent downplayed an upcoming meeting of world leaders that excludes Western nations. Bessent also acknowledged that the Federal Reserve (Fed) should be politically independent, but either couldn't or wouldn't specifically elaborate on his waffled claim that the Fed has "made a lot of mistakes", outside of not obeying President Donald Trump's demands for lower interest rates.

Bessent made several appearances throughout the holiday Monday, making sure the Trump administration's brand of policy conveyance maintained a steady stream through the American market session.

Key highlights

Trump may declare a national housing emergency this fall to address rising prices and dwindling supply.
The Fed is and should be independent, but the Fed also made a lot of mistakes.
Fed's Cook should be removed or step down if mortgage allegations are true. She hasn't denied them.
I'm surprised that the Fed has not done an independent review of allegations against Fed's Cook.
(In regards to negative market impact of the White House politically pressuring the Fed) We haven't seen anything yet.
We're looking closely this week (at possible Russia sanctions).
All possibilities are on the table.
I'm not concerned about the strength or weakness of the US Dollar compared with the Euro. (Bessent's academic and professional work in the field of finance and economics has centered almost entirely around US Dollar depreciation)
There's a good chance US CEA's Miran is seated before the September Fed meeting.
The bond market and FX markets are calm.
There are other statutes that could be used to justify tariffs, but they are not as efficient or as powerful.
I'm confident that the Supreme Court will uphold Trump tariffs.
India and China are bad actors in Ukraine by fueling the Russian war machine.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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