Street Calls of the Week
Investing.com -- Treasury Secretary Scott Bessent said Thursday that the next round of U.S.-China trade talks should show a "big breakthrough," as the current trade truce is set to expire on November 10.
Speaking on CNBC, Bessent noted it would be helpful for President Trump and Chinese President Xi Jinping to meet during their upcoming visit to Korea.
Bessent also revealed that the Treasury Department has reached the halfway point in Federal Reserve Chair interviews, with the first round expected to conclude next week. He anticipates that 3 to 5 strong candidates will be presented to President Trump for consideration.
Addressing U.S. agricultural concerns, Bessent expressed disappointment that China had decided to use soybeans as a bargaining chip in trade negotiations. He announced that substantial support for American farmers, particularly soybean producers, would be revealed on Tuesday. Bessent mentioned he had met with President Trump and advisor Brooke Rollins yesterday to discuss the issue, noting that with a record harvest this year, farmers may run out of storage capacity.
On Argentina, Bessent clarified that the U.S. is providing a swap line to the country rather than direct financial assistance. He emphasized that this move aims to maintain strategic U.S. interests in the region and prevent "failed economic models" in South America. Bessent expressed confidence that Argentine President Javier Milei would perform well in upcoming midterm elections.
Regarding domestic spending, Bessent stated the administration wants a clean continuing resolution on federal spending and dismissed concerns about federal layoffs as a "talking point." He criticized Democrats for wanting to "pump more inflationary spending" and noted that Senate Majority Leader Chuck Schumer had changed his position on spending since spring, which Bessent attributed to polling data.