Treasury Secretary Bessent touts US economic strength, criticizes China

Published 30/07/2025, 16:16
© Reuters.

Investing.com -- Treasury Secretary Scott Bessent expressed optimism about the U.S. economy during a Washington event on Wednesday, stating that "confidence and momentum" are returning to American economic activity.

Bessent praised the "incredible" underlying fundamentals and Trump administration policies that he believes are driving growth, declaring that the U.S. is currently "the hottest economy" and has established conditions to accelerate further.

On international trade matters, the Treasury Secretary indicated that negotiations with China could continue beyond August 1 if agreements aren’t reached by then. "Encourage people not to panic if no deals by Aug. 1," Bessent said, adding that he expects "a busy August with trade deals still to be done."

Bessent noted that deals with Japan and the European Union preceded discussions with Chinese representatives, claiming that China is "a bit on the heels" in negotiations and that the "rest of the world is now with us."

The Treasury Secretary delivered sharp criticism of China’s economic model, describing it as "starting to implode" and stating that the U.S. hasn’t "seen an unbalanced economy like China since the 1800s." He also characterized Europe as a "regulatory morass."

Regarding monetary policy, Bessent said he would like to see "a bit of imagination" from the Federal Reserve, reiterating his view that the central bank is "wrong on tariff inflation." While noting that markets are pricing in future rate cuts, he stated he was "not expecting a rate cut today from Fed."

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