Inside the Treasury: Bessent Talks Deals, Deficits, and a Dash of Musk‑Style Hyper‑Efficiency
Imagine a morning where two big news outlets—Fox News and Bloomberg TV—get a front‑row seat to the Treasury’s chief, Scott Bessent. The result? A series of promises, half‑sheared numbers, and a sprinkle of sarcasm that might just keep your coffee unconscious.
Deal‑Making on the Fast‑Track
- Bessent says “several large” trade deals will be announced in the next couple of weeks.
- He expects in‑person sit‑downs with China as the tariff negotiations heat up.
- The 90‑day pause on the steep reciprocal rates is about to run out—no time to dilate.
- “We’re moving quick, see,” the official jokes, because the countdown feels like a hallway on a coffee‑guzzling day.
China, China, China
The U.S. is set on handing out tariff talk cards again. “Negotiating in person again,” Bessent stated, giving the Chinese side a full‑blown invitation to the party. Democrats? Maybe a handshake without a handshake.
EU: The “Collective Action Problem”
While most partners have been “in very good faith,” the EU stands out like a lumpy sock in a well‑fed marbled deck. Trump’s looming 50% tariff threat on EU goods (starting June 1) was almost a comedic slap—“Because their discussions are just nowhere.” Bessent mused that a 20% tariff was a modest pledge, a short‑stop comparison to his actual threats. He added a cheeky shoutout to Germany, hinting at a potential U.S.–Germany reset under Chancellor Merz, just in case.
Deficits, Growth, and Gravity‑Defying Numbers
- Bessent’s prediction: the U.S. budget deficit by 2028 could be about 3% with revenue from tariffs.
- He argues that a growing economy must outpace debt—the classic parenting mantra: “Make the baby grow faster than the cost of feeding it.”
- He admits Congress is notorious for “resistance to spending cuts,” which truly opens a floodgate of sarcastic sighs.
Tariff Equilibrium: The Numbers Party
The Treasury chief claims a tariff equilibrium is on the horizon. As tariff and non‑tariff barriers shrink, friction dwindles, resulting in “hundreds of billions” of extra revenue each year. He’s confident that this will reduce the need for bond issuance, essentially turning out a slick new finance growth diagram on a crowded blackboard.
From Musk to Money: Bessent’s Impromptu Ode
While the collector’s item of Elon Musk’s Dogecoin venture is arguably the highlight of Bessent’s speech, he also pledges to keep bureaucracy from stalling progress. “We need to get costs under control,” he says, jotted down in a tweet spelled as if it were a prophecy from a supercharged AI. The tone is fitting: “One of the most important of my lifetime.” Spontaneous humor aside—fear not, no laughs at Elon’s expense—mindful of humor, yet human.
Banking Buzz: The Supplementary Leverage Ratio (SLR)
- Bessent says we’re very close to moving the SLR for banks.
- When it shifts, yields could drop by “tens of basis points”—a subtle reminder that not all interest rates come from a plug‑and‑play button.
Tick‑Tock: The “Big, Beautiful” Tax Bill & Bonds
Despite the “Big, Beautiful” tax package rushing home to Congress, Bessent’s not worried about bond market spirals. He’s implying that market changes, including bond sell‑offs, are global. Oh, and yes—he’s biased toward the idea that our debt story’s beats “US growth” is the headline, not a policy speculation episode.
There also is a placating mention of parallel trade deals that would soon shift focus to privatizing Fannie Mae and Freddie Mac, while the G7 worries about imbalances around China.
All‑in‑One Summary
- Heavy tariff revenue promised.
- Deficit optimism (3% by 2028).
- Deals announced soon, especially with China.
- EU’s collective action problem aired.
- Potential U.S.–Germany reset.
- Minimal worries over bond moves; focus on growth.
- SLR tweaks near summer, potentially easing Treasury yields.
- Privatization goals after trade deals settle.
- Harvard called a “giant hedge fund” in a surprise side remark.
That’s the low‑down. A snapshot that’s all coffee‑house banter—treat it like it’s the next headline you’ll want to read before you turn back to that endless spreadsheet.
