The US finance minister, Scott Bessent, has confirmed that the United States is determined to lower interest rates. In an interview with FOX News, he emphasized that this policy choice is essential for the economic stability of the country. At the same time, Bessert expressed sharp criticism of China’s trade strategy, which directly influenced the financial markets.
Lower interest as a spearhead
According to Bessent, an American interest rate reduction is essential to give the economy a big boost and to offer both companies and consumers some financial breathing space. Although the Federal Reserve (FED) is ultimately in control when it comes to monetary policy, his statement shows that the US government wants to focus on a smoother interest rate policy.
The crypto market has been waiting for this for a while. Lower interest rates often ensure that risky assets, such as crypto, get a big boost. If the interest rate actually goes down, it can cause a new wave of optimism and investments in the market.
Criticism of China’s export model
In addition to his focus on interest rate, Bessent also took a good look at China’s economic strategy. According to him, the country leans too heavily on export, something he called “unacceptable” without detours.
He is convinced that Chinese manufacturers will eventually pay for the American input rates. His statements fits seamlessly into the ongoing trade conflict between the US and China, in which import duties and economic power relations play an increasingly important role.
Decrease on the financial and crypto market
For the time being, the financial and cryptom markets do not seem to be convinced of an emerging interest rate reduction. The uncertainty remains great, partly due to the ongoing import tariffs towards Canada and Mexico.
The S&P 500, the indicator of the 500 largest American companies, dived 1.7% in the min. In the crypto world, the blow was even more intense: Bitcoin (BTC) and Ethereum (ETH) are at the time of writing on losing 8.5% and 10.9% respectively.
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Source: https://newsbit.nl/amerikaanse-minister-van-financien-we-willen-de-rente-omlaag-brengen/
