US Treasury Secretary Scott Bessent made significant comments about the ongoing tariff tensions with China at a closed-door investor summit on Tuesday in Washington.
According to Bloomberg, Bessent told attendees that the standoff with China -- which he said was essentially an embargo -- is unsustainable and that he expects it to de-escalate.
He said that while formal negotiations haven't commenced, a deal remains possible.
Risk assets have rallied on this, with the S&P 500 rallying 35 points to a session high after a conspicuous bid all morning.
Once again we see high-ranking officials making market-moving comments behind closed doors. Bessent's remarks about China trade de-escalation being shared exclusively with select JPMorgan clients represents exactly the kind of two-tier information system that undermines market fairness.
Every time there is a market move in anything, people assume it's because Trump is leaking it to friends... evidently it's not just Trump doing the leaking.
