Treas Sec Bessent on CNBC:
- Oil prices will come down.
- Pres. has been saying Iran is not ready to make a deal.
- Operation outcast will make Iran make a deal
- The bond market is most resilient in the world
- Had a robust meeting with PBOC chief last night
- If there were a problem with the US bonds, people would be selling our bonds and buying others. We are the best performing bond market.
- Regarding US bond market don’t believe I can change equilibrium price.
- The 10 year yield is at levels when the Pres. took office.
- Meeting with Canadian counterpart. We are not in war with Canada.
- Canada was offered the best trade deal than any country in the world.
- Carney is not doing what’s best for Canadian people
- Does not want to speculate on what Fed chair will do.
- Traditionally, the Fed does not raise rates into a supply shock
- Believes that Japanese government and the Bank of Japan are to do things that lead to a JPY rise
- JPY market is pricing in expectations now.
The USD is ticking a little lower. The comment that the Fed does not traditionally raise rates into a supply shock is the catalyst. Bessent and Warsh took the same plane to the G20. Bessent quipped that they talked about tennis, but this comment is the out for Chair to put off tightening. However, the vote is for by committee.
This article was written by Greg Michalowski at investinglive.com.