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Investing.com -- Treasury Secretary Scott Bessent criticized Boeing for conducting "massive" share buybacks instead of investing in research and development during an interview on Fox Business Wednesday.
Bessent described Boeing as "once great" but said the company "has been crippled for several years." His comments came as part of a wide-ranging interview covering government stakes in companies, mortgage finance, and Federal Reserve policy.
When asked if the U.S. would consider taking a stake in NVIDIA Corporation, Bessent said he doesn’t think the chipmaker needs financial support, adding that a government stake in NVIDIA seems "not on the table." However, he indicated the government could take stakes in other areas like shipbuilding, while expressing uncertainty about whether stakes in defense companies are necessary.
Bessent noted that other semiconductor firms have performed well but warned that Taiwan Semiconductor Manufacturing Company’s dominance in chips represents a security risk.
Regarding the planned sale of stakes in Fannie Mae and Freddie Mac, Bessent said banks advising on the transaction would be selected in September or early October. He indicated the Treasury is moving "deliberately" on the process to avoid widening the spread between mortgage rates and Treasury yields.
The Treasury Secretary mentioned that banks have advised on a $30 billion sale of Fannie and Freddie, adding that a 3% to 6% stake sale would generate at least $30 billion. He emphasized the government’s desire to attract "a high quality group of international investors" for the transaction.
On international matters, Bessent said he expects to meet with China’s Vice Premier in late October or early November, describing previous meetings as "moving the ball forward." He added that delisting Chinese companies from U.S. exchanges "hasn’t been on the table yet."
Bessent also criticized the Federal Reserve, stating that since 2008, the central bank "has strayed from its core monetary mission" and "needs to get back to its core mission." He described the Fed as an "unaccountable institution" but emphasized that Fed governors operate independently, saying "we don’t send a note to Waller, Bowman on what to do."