US likely to revisit January 2020 China purchase deal, says Treasury Secretary

Investing.com -- US Treasury Secretary Scott Bessent has stated that the US will likely revisit the purchase agreements with China that were established in January 2020. Bessent’s comments came during an appearance on Fox Business, where he emphasized the need for China to de-escalate its tariffs.

Bessent stated the US is committed to ensuring that China honors the agreements previously signed. He also suggested that the uncertainty surrounding tariffs will eventually be resolved. The Treasury Secretary further highlighted the potential negative impact for China if holiday orders are not placed.

In addition to his comments on China, Bessent reported that he had a productive meeting with the Finance Minister of Indonesia. However, he clarified that he is not currently involved in talks with the European Union.

Bessent also touched on the US-Ukraine deal, stating it shows no divergence between the US and Ukraine. He suggested that the deal sends a strong signal to Russia and aids President Trump in his negotiations with the country.

On the topic of the US economy, Bessent stated that the country had a good first quarter and expects the economic data to be revised. He mentioned that the GDP decline may have been due to inventory stocking of imports, but he anticipates a revision of the GDP figures.

Finally, Bessent indicated that the 2-year rate being below the Federal Funds rate signals that the Federal Reserve should consider a rate cut.

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