In a recent interview, Treasury Secretary Scott Bessent clarified that President Trump is not pressuring the Federal Reserve to cut interest rates, despite previous comments from Trump suggesting otherwise. Bessent stated that the administration's focus is on long-term borrowing costs, particularly the 10-year Treasury yield. The administration's strategy involves expanding the US energy supply to curb inflation, making goods cheaper and long-term borrowing more manageable. However, this approach has faced criticism, with Democrats unhappy about Bessent giving Elon Musk's controversial D.O.G.E department access to federal Treasury data. Bessent defended this decision, stating that the US has a serious spending problem that needs to be addressed. Bessent also discussed Trump's trade policy, which involves using tariffs to revive domestic industries and bring back manufacturing jobs. While Bessent has criticized former Treasury Secretary Janet Yellen's strategy in the past, he is currently keeping much of her framework in place. The Treasury will be auctioning $125 billion in long-term debt next week, and Bessent is focused on stability rather than making drastic changes. The reintroduction of the federal debt ceiling and the Federal Reserve's quantitative tightening program are additional complications that the Treasury is navigating. The Treasury Borrowing Advisory Committee has recommended modifications to the Treasury's borrowing strategy, but Bessent emphasized that the Treasury makes the final decisions.



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