Trump and Bessent Push for Trade Deals and Fed Rate Cuts by October

The Trump administration is forging ahead with ambitious plans to reshape U.S. economic policy, tackling both global trade agreements and domestic monetary reforms. U.S. Treasury Secretary Scott Bessent recently outlined a bold agenda, emphasizing the completion of major trade deals and a potential overhaul of the Federal Reserve.

On the trade front, negotiations with countries like Switzerland and India are in full swing, with a target to finalize agreements by the end of October. While progress is steady, Bessent noted that India has been somewhat reluctant in talks, posing challenges to reaching a swift consensus. Despite this, he remains optimistic, stating that the U.S. is well-positioned to secure substantial terms with key global partners. Additionally, Bessent highlighted President Donald Trump’s strong relationship with Chinese President Xi Jinping, with plans for further discussions in the coming months. However, any reduction in Chinese tariffs hinges on sustained progress in curbing fentanyl flows, which could take months or even a year to evaluate.

Domestically, Bessent urged the Federal Reserve to consider a significant 50-basis-point interest rate cut in September, arguing that earlier action could have been taken in June with more accurate economic data. He pointed to foundational issues within the Fed, suggesting that the Trump administration is open to appointing a new chair to drive transformative changes. This push for reform aims to address systemic challenges and reposition the Fed for greater effectiveness.

Bessent also addressed potential legal hurdles, vowing to challenge any court rulings against the administration’s tariff policies, which are expected to generate significant government revenue. As the October deadline for trade talks looms and monetary policy debates intensify, the outcomes of these efforts could redefine the U.S.’s economic landscape both at home and abroad.