Treasury Secretary Bessent:Confident that fiscal policy bill will progress in coming hours

US Treasury Secretary Bessent is speaking on Bloomberg TV and says:

• Confident that fiscal policy bill will progress in coming hours.
• This is a start of controlling US debt.
• Republican budget bill will help grow the economy while controlling and bringing down expenses.
• Questions why the US would borrow longer term at these rates?
• He is focusing on the 10 year.
• The whole curve could parallel shift down
• We could see a lowering of rates. Inflation is very low.
• Will be working on Fed Chair successor over the next week’s and months
• Asked about speculation over Fed chair, says I will do whatever the president wants but I have a stop in Washington
• We have give consideration to the January Fed Board nominee. Could eventually become the Fed Chair
• Fed made gigantic mistake in 2022 rates
• We have seen no inflation from tariffs, there could be one time price adjustment.
• There will be a flurry of trade deals going into the July 9 expiration of tariff relief, and pressure increases.
• Countries should be aware that we could spring back to April 2 levels on tariffs.
• Any tariff negotiation extensions will be up to Trump
• Any action on Fannie Mae Freddie Mac will be focused on making sure mortgage rate do not move higher

If rates are too high, why does the Treasury issue 10 year notes?.

Meanwhile on trade, Eu Commissioner Sefcovic says that will fly to Washington on Tuesday for trade talks after high level meeting in Turkey.

This article was written by Greg Michalowski at www.forexlive.com.