ECONOMYNEXT – US markets rallied after reported comments where Treasury Secretary Scott Bessent said he expects “there will be a de-escalation” in a trade war with China in the “very near future” and President Donald Trump denied he would fire Fed Chief Jerome Powell.
With China retaliating against the US with similar rates trade with the US had effectively impossible.
“We have an embargo now, on both sides, right?” Bessent had said, according to a participant at the investor forum hosted by JP Morgan Chase, US financial news channel CNBC reported.
The Dow Jones closed up 1,016 points after the comments.
In another development, President Donald Trump had walked back on his previous comments that he wanted to fire Federal Reserve Chief Jerome Powell, for not cutting rates said he had ‘no intention’ of firing him.
“None whatsoever,” Trump said in the Oval Office when asked to clarify that he did not seek Powell’s removal. “Never did.”
Powell triggered worst inflation bubble seen since the early 1980s by delaying rate hikes while operating an abundant reserve regime, probably the deadliest operating framework run by the Federal Reserve since it triggered the Great Depression, with the roaring 20s economic bubble.
After repeated ‘stimulus’ in the wake of the collapse of the Housing Bubble, US budgets are shot and governments are getting kicked out in single terms.
