President Trump of the USA commented on the market again. He recently stated that Treasury Secretary Besant understands the market. As soon as Besant appears on Television, everything starts to rise. US stocks experienced a slight uptick, maintaining their intraday gains. The USD/CHF rose by 0.5% during the day, reported at 0.843. Besant's speech that day addressed trade negotiations. In addition, media reports on Wednesday cited informed sources stating that the USA will not seek a depreciation of the dollar in the trade agreement, and Besant is the only member responsible for handling these issues.
On Wednesday, President Trump once again commented on the market. He stated that Treasury Secretary Mnuchin is doing well, the numbers make him look better, he understands the market, and once Mnuchin appears on Television, everything has to go up.
Trump discussed the role of Treasury Secretary Mnuchin's speeches and public appearances on the market. After Trump's remarks, U.S. stocks saw a slight short-term increase, maintaining their intraday upward momentum. U.S. stocks have now risen for three consecutive Trade days.
Mnuchin's speech that day touched upon Trade negotiations.
Additionally, the media cited informed sources on Wednesday, reporting that the USA will not seek a depreciation of the USD in the trade agreement. Treasury Secretary Mnuchin is the only member responsible for handling these issues and has not delegated others to discuss monetary policy; negotiations can only take place in his presence. The USD saw a short-term increase of about 20 points, rising above 101, turning overall upward during the day.
Trump has frequently commented on the market recently.
The significant rebound of the U.S. stocks since early April highlights Trump’s claim on April 9 that there was a 'major Buy opportunity.' Reviewing the performance of U.S. stocks over the past few months, Trump's speeches have had a substantial impact on the market:
In early April, according to CCTV news, the USA implemented a 10% general tariff and tariffs on specific Industries such as Autos, Steel, and Aluminum, causing the S&P 500 Index to drop nearly 19% from its peak in February. Subsequently, after Trump stated on April 9 that 'now is a good time to Buy,' just a few hours later he announced the suspension of certain tariffs, leading to a significant rebound of over 16% in U.S. stocks for the month.
On May 8, Trump stated that if a trade agreement combined with tax cuts could achieve results, "you better go out and Buy Stocks now."
This Tuesday, as the S&P 500 Index regained lost ground for the year, Trump remarked that a month ago, companies were still dissatisfied with him, but as the market rose, their attitude changed. The market surge is truly wonderful. It will continue to rise, much higher.
Bessent recently spoke out.
1. Working hard to sell investors on the long-term growth potential of the USA economy.
On May 5, local time, facing market turmoil and the international community's doubts about the USA, Bessent worked hard to sell investors on the long-term growth potential of the USA economy, urging them to bet on the USA and refuting the theme of "selling America." Bessent stated:
The trade, tax cuts, and deregulation in the Trump administration's economic agenda are not standalone policies, but rather "interlocking components of an engine" aimed at driving long-term investment in the USA economy and making the USA more attractive to investors; the USA market has "anti-fragile" characteristics, rebounding after past blows such as financial crises; by this time next year, the USA's GDP growth could be approaching 3%.
2. Believes the Federal Reserve should cut interest rates, but Powell should not be dismissed.
On May 1, local time, Bessent echoed Trump's stance, believing that the Federal Reserve should cut interest rates:
The US Treasury market is signaling that the Federal Reserve should lower interest rates. We see that the two-year Treasury yield has fallen below the federal funds rate. This indicates that the market believes the Federal Reserve should consider cutting rates.
Despite differing views from Powell, Becerra made Trump change his stance previously, stating he would no longer seek to fire Powell. In late April of this year, Trump, who had repeatedly expressed intentions to fire Powell, publicly stated that he did not plan to dismiss Powell and accused the media of misrepresenting his intentions. Reports indicate that Trump's change of mind was partly due to warnings from Treasury Secretary Becerra and Commerce Secretary Ross, who privately advised Trump that firing Powell could lead to market turmoil and legal disputes.
3. Tariff Statements.
According to the Global Times, Becerra and Trump's senior trade and manufacturing advisor Navarro had a dispute in late March in the office of White House Chief of Staff Susan Rice. Navarro advocated for a 25% across-the-board tariff on $3 trillion worth of imports; meanwhile, Becerra, who had been a Wall Street investor, warned that such a move would lead to market turmoil and outlined various risk scenarios. Heated rhetoric continued to emerge.
Bolstered by the '90-day pause,' U.S. stocks surged on April 9, marking a significant turning point for the market. Media reports revealed that behind the scenes, Becerra was maneuvering Navarro away, leading Trump to a point of no return. On the morning of April 9, when Navarro was scheduled to meet with economic advisor Hassett at another location in the White House, Becerra and Ross quickly headed to the Oval Office to propose pausing certain tariffs, and then publicly announced the news outside the White House.
On April 22, Becerra stated at a closed-door investor meeting that the tariff impasse was unsustainable and expected the situation to ease in the near future. This statement significantly boosted market risk sentiment.
Editor/Somer
