Treasury Secretary Scott Bessent‘s recent assurances to Wall Street executives about imminent trade agreements with key U.S. allies have yet to materialize, sending markets into a tailspin as investors grow increasingly concerned about the administration’s tariff policies.
What Happened: About 10 days ago, Bessent reportedly told financial executives he was making “significant progress” on trade deals with India, Japan, South Korea, and Australia. These agreements would have potentially allowed President Donald Trump to focus on trade issues with China while avoiding broader economic disruption.
“In the end, it doesn’t matter what Bessent thinks or does because he works for Trump,” one banker told FOX Business Senior Correspondent Charles Gasparino, according to a New York Post column on Monday.
The Dow Jones Industrial Average plummeted 971.82 to close at 38,170 on Monday, while the S&P 500, which is tracked by the SPDR S&P 500 SPY, fell 2.36% to close at 5,158. Instead of turning to more conventional safe havens like Treasury bonds, investors flocked to alternative assets like gold and Bitcoin BTC/USD.
See Also: Top Fed Voices Defend Powell, Slam Trump’s Attack On Central Bank Independence
Why It Matters: “The White House needs trade deals done quick with a negotiation path established with China, otherwise the markets, 10-year yield, USD, Gold, and the economy will head down their own divergent paths,” warned Dan Ives, tech analyst at Wedbush Securities.
The situation was further complicated when Trump called Federal Reserve Chair Jerome Powell a “major loser,” suggesting he might attempt to remove Powell for his reluctance to cut interest rates amid inflation concerns from tariffs.
Japan was reportedly close to finalizing a deal, but sources indicate the White House continues to adjust terms. The negotiating team presents its own challenges, with the trade-centrist Bessent seemingly leading efforts while working alongside hawkish figures like Commerce Secretary Howard Lutnick and trade adviser Peter Navarro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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