Wall Street will be ‘fine’, we are focused on ‘Main Street’ – Treasury’s Bessent
© Reuters
Investing.com — US Treasury Secretary Scott Bessent said the Trump administration is focused on Main Street, not Wall Street, in response to the market sell-off following tariffs on Canada, Mexico, and China.
“We have a new trend, which is what we’re focused on,” Bessent said in an interview Tuesday on Fox and Friends. “It’s a focus on Main Street.”
“Wall Street’s done great… Wall Street can continue to do fine,” he added. “But we have a focus on small business and the consumers. So we are going to rebalance the economy. We’re going to bring manufacturing jobs home.”
Bessent also said the Trump administration is set on bringing interest rates down, highlighting that the drop in rates is one of the administration’s most significant accomplishments so far.
“I think thus far, one of the biggest wins for the American people is since Election Day and since inauguration, mortgage rates have come down dramatically, both the level of the 10-year bond and the spread between the 10-year and mortgage rates, which I think is an effect of the bank deregulation we’re going to do,” he said.
Regarding the China tariffs, the Treasury Secretary thinks Chinese manufacturers will eat the tariffs, and prices for U.S. consumers and businesses won’t go higher.
“They’re in the middle of a financial crisis right now that they’re trying to export their way out of it so with the China tariffs, I am highly confident that the Chinese manufacturers will eat the tariffs, prices won’t go up,” Bessent said.
On inflation, he said it is slowing, although it is still not back down to the Fed’s target area. He said the administration would use deregulation to bring prices down.
“I think one of the untold stories for the past two and four years is that the inflation rate that the previous administration put on households is several thousand dollars of administrative burdens every year, and if we can cut that red tape and bring that down then that’s an excellent start on the affordability.”
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Crumbling Markets Have Sent Treasury Yields Plunging, Offering Hope for Crypto
As if the bursting of a speculative bubble in memecoins wasn’t enough to send crypto markets tumbling over the past weeks, a general risk off sentiment in traditional finance is adding to the pressure.
Perhaps in a bit of a speculative bubble themselves, the major U.S. stock market averages have been in quick retreat of late, triggered by a series of tariff threats from President Trump. Threats no more, 25% levies against goods from Mexico and Canada went into effect today, among additional taxes on Chinese goods.
Falling another 2.6% yesterday and down in early action Tuesday, the Nasdaq today now sits below the level it was at prior to Trump winning the election in November.
“We’re set on bringing interest rates down,” Treasury Secretary Scott Bessent stated in an interview with Fox News Tuesday morning.
Indeed, the 10-year Treasury yield currently stands at 4.13% versus 4.80% just prior to the Trump inauguration six weeks ago.
At the short end of the curve, markets are dramatically repricing expectations for Fed rate cuts in 2025. The odds of at least one rate cut by the Fed’s May meeting have risen to 47% versus just 26% one week ago, according to the CME FedWatch Tool. The chances of two or more rate cuts by the June meeting have jumped to 36% from 15% one week ago.
Crypto Daybook Americas alluded to potential rate cuts that could help lift depressed crypto prices, though the economy remains far from a return to quantitative easing.
While lower rates might seem like an easy fix, the challenge lies in balancing inflation, which currently stands at 3% year-over-year after four consecutive months of increases. The last time headline inflation was at or below the Fed’s 2% target was back in February 2021.
The Federal Reserve must navigate a delicate balance — easing rates to help keep the economy out of recession without pushing inflation even higher.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system. In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR).
“CoinDesk Bot” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy here.
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Treasury Secretary Scott Bessent Tuesday morning said the Trump administration is committed to lowering interest rates.
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