US Treasury Secretary Bessent: “Making an economic deal with a leader who does not want a peace agreement is very difficult”
US Treasury Secretary Scott Bessent stated that “Making an economic deal with a leader who does not want a peace agreement is very difficult” following the dispute between US President Donald Trump and Ukrainian President Volodymyr Zelensky.
In an interview with Bloomberg TV, Bessent described the controversy between Trump and Zelensky as “one of the biggest own goals in history.” He said, “Making a peace agreement with a leader who does not want it is very difficult.” Bessent criticized Zelensky for disrespecting the American people, stating that “It was unacceptable for him to behave this way here.” He added, “We had a long, intense negotiation with President Zelensky in Kiev, but we were going to make an economic deal. However, whether this will have any repercussions when it reflects back to the public remains to be seen.”
Bessent emphasized that whether negotiations with Zelensky will continue will depend on President Trump. He stated, “TARIFFS WILL CONTINUE TO GENERATE REVENUE” Bessent highlighted that significant revenue has been generated since the implementation of tariffs targeting China, emphasizing the role tariff revenues will play in reducing the country’s deficit. Referencing the proposal of the Mexican government to apply reciprocal tariffs to those imposed by the US on China, Bessent suggested that Canada’s doing the same would be nice.
He claimed that this would help protect North America from the flood of imports from China. “TRUMP ECONOMY WILL START” Bessent noted that within 6-12 months of reducing state spending and reviving the private sector, we could talk about the “Trump economy.” Describing plans to reprivatize the economy, he said, “I believe that as we reduce regulations in the next 6-12 months, extract more American energy, establish our energy program, make the tax cuts law permanent, and achieve some certainties, we can quickly return to the 2% inflation target of the Fed.”
Bessent stated that the drop in long-term government bond yields would depend on how quickly inflation decreases and the level of growth. He pointed out that after the presidential elections last year, bond yields dropped by more than 20 basis points. Referring to the relationship between mortgage rates and bond yields, Bessent noted that the housing market is currently tight, but he predicted that it would be resolved in the coming weeks. Expressing optimism about passing the budget bill that includes tax cuts, he stated that he believes progress has been made.
