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Investing.com -- Treasury Secretary Scott Bessent said Tuesday he sees no reason for Federal Reserve Chair Jerome Powell to step down now, while revealing plans to announce several trade deals within days.
Speaking on Fox Business, Bessent said tariffs are bringing manufacturing back to the United States. He noted that President Trump has mandated permits for factories to be completed within one month.
The Treasury Secretary disclosed that August 1 represents a "pretty hard deadline" for all countries in trade negotiations, though he clarified this doesn’t mean negotiations can’t continue after tariffs increase. The current deal with China expires on August 12, and Bessent will meet with his Chinese counterparts in Stockholm next Monday and Tuesday.
"We’ve moved to a new level in China talks," Bessent stated, adding that discussions with China might include topics like Russia and Iranian oil. He pointed out that India also presents concerns regarding Russian oil, and that there will be "tough talks" with G-7 nations on Russia. However, he emphasized that trade talks and efforts to end the Russia-Ukraine war are separate issues.
Regarding tariff revenue, Bessent projected it could annualize at $300 billion, calling it a "big number" that could represent 1% of GDP. He suggested the possibility of $2.8 trillion in tariff revenue over a decade. The June budget surplus, he noted, was also a product of spending cuts.
Looking ahead, Bessent predicted GDP growth would reach 3% or more by the first quarter of 2026.
On specific trade negotiations, Bessent mentioned that talks with Indonesia resulted in a fifth draft for a deal, while discussions with Japan are going "very well."