WEBVTT - US Treasury Secretary Scott Bessent Talks Tariffs, Fed, Treasuries

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>I'm pleased to be with Treasury Secretary Scott Bessett this time.

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<v Speaker 2>You're back on Bloomberg in Argentina. Thanks for joining us again.

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<v Speaker 1>Good good to be with you, Good to be in

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<v Speaker 1>Buenos Aires.

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<v Speaker 2>Yeah, it's fantastic here. So you've come here at a

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<v Speaker 2>time when the IMF has just announced this twenty billion

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<v Speaker 2>dollar agreement with Argentina. But we haven't seen a Treasury

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<v Speaker 2>secretary come to Argentina since Trump's first administration, and that

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<v Speaker 2>was for G twenty. So why the emphasis from the

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<v Speaker 2>Trump administration on Argentina.

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<v Speaker 3>Well, and Marie, a couple of reasons. The reason for

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<v Speaker 3>being here today is today's a Fulcrum day. So the

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<v Speaker 3>Melee administration has done three adjustments and this marks the

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<v Speaker 3>beginning of the third one. So they did a large

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<v Speaker 3>fiscal adjustment, a large monetary adjustment, and they're doing or

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<v Speaker 3>they announced on Friday, or large currency adjustment has allocated

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<v Speaker 3>twenty billion to them. The World Bank has allocated twelve billion.

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<v Speaker 3>And I wanted to come here today to show support

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<v Speaker 3>for President Melee and his commitment.

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<v Speaker 1>Two.

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<v Speaker 3>What I think is historic in terms of bringing Argentina

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<v Speaker 3>back from the precipice.

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<v Speaker 2>When it comes to the trade negotiations, I'm sure you

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<v Speaker 2>spoke with President Milay about the ten percent rate that

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<v Speaker 2>Argentina was hit with. Do you think at some point

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<v Speaker 2>that can come down to zero?

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<v Speaker 3>Look, I think we're going to start the negotiations and

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<v Speaker 3>just like with everyone else, I'm telling them, bring your

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<v Speaker 3>a game, we'll see what you got and we'll go

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<v Speaker 3>from there.

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<v Speaker 2>Can any country go to zero again?

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<v Speaker 1>We'll see.

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<v Speaker 3>Is I don't know what's going to happen with the

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<v Speaker 3>negotiations because we've got a whole box of things. We've

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<v Speaker 3>got to overcome tariff, non tariff trade barriers, currency manipulation,

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<v Speaker 3>and sub subsidization of labor and facilities. So there's a

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<v Speaker 3>big menu there.

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<v Speaker 2>There's been an early focus on Latin America writ large

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<v Speaker 2>from the Trump administration in the first one hundred days.

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<v Speaker 2>Is Latin America policy also in a sense China policy

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<v Speaker 2>for this administration.

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<v Speaker 3>Well, I think that might be a good description because

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<v Speaker 3>what we are trying to keep from happening is what

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<v Speaker 3>has happened on the African content where China has signed

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<v Speaker 3>a number of these rapacious deals marked as AID, where

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<v Speaker 3>they are really they've taken mineral rights. They've added huge

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<v Speaker 3>amounts of debts onto these countries' balance sheets. It's undisclosed

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<v Speaker 3>to any of the other international organizations. They've got tolling arrangements,

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<v Speaker 3>so they're guaranteeing that future generations are going to be

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<v Speaker 3>the poor and without resources, and we don't want that

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<v Speaker 3>to happen any more than already has a Latin America.

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<v Speaker 2>China has a foreign exchange swap with Argentina. Would you

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<v Speaker 2>consider a credit line directly from the United States.

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<v Speaker 3>That's not under consideration in terms of so they have

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<v Speaker 3>an eighteen billion dollar credit swap in r and b

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<v Speaker 3>Argentina under the previous peronas government drew down five billion,

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<v Speaker 3>and that will remain outstanding. The Chinese showed very good

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<v Speaker 3>faith effort after the announcement or in conjunction with the

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<v Speaker 3>IMF announcement, so that is going to be rolled forward

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<v Speaker 3>for a year.

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<v Speaker 2>But do you want them to get rid of that

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<v Speaker 2>swap with Beijing?

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<v Speaker 3>Well, I think as this administration continues stay the course

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<v Speaker 3>of their economic policies, they should eventually have enough foreign

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<v Speaker 3>exchange inflows to be able to pay that off.

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<v Speaker 2>So less than two weeks ago, you and I were

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<v Speaker 2>talking outside of the White House after what President called

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<v Speaker 2>Liberation Day, and you said you weren't part of the negotiations.

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<v Speaker 2>Now you're leading them. What's changed in these past twelve days.

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<v Speaker 1>No, no, no, no.

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<v Speaker 3>What I said was I didn't construct the actual rate,

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<v Speaker 3>the teriff rates. I've always been part of the tariff policy.

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<v Speaker 3>I had been focusing on tax maybe I want to

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<v Speaker 3>talk about that later. That's going very well, and now

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<v Speaker 3>with the trade negotiations, I'm going to be part of that.

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<v Speaker 3>And the President has hit a ninety day pause button,

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<v Speaker 3>and we are moving quickly with many of our most

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<v Speaker 3>important trading partners. So we had Vietnam in last week,

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<v Speaker 3>we have Japanese in on Wednesday, South Korea next week,

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<v Speaker 3>so it's.

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<v Speaker 1>Going to move fast.

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<v Speaker 3>But the important thing for your viewers to know is

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<v Speaker 3>we're sending up a process and we are going to

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<v Speaker 3>run that process. It's going to be orderly and at

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<v Speaker 3>the end of the day, especially for the most important

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<v Speaker 3>trading partners, the President's going to be involved.

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<v Speaker 2>So when it comes to the current negotiations this week,

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<v Speaker 2>you're also sitting down again with the Spanish negotiating team.

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<v Speaker 2>This excuse me, the Japanese negotiating team and also the

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<v Speaker 2>Spanish economy minister.

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<v Speaker 3>Well, the Spanish economics minister was just a pre arranged meeting.

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<v Speaker 3>He and I have never met, so that is not

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<v Speaker 3>a trade sit down. The Japanese meeting is a trade negotiation.

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<v Speaker 2>The Japanese Prime Minister recently said he's not going to

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<v Speaker 2>rush to get a compromise in a negotiation. How quickly

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<v Speaker 2>do you think you can see these deals come to fruition?

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<v Speaker 3>Well, again, I think there will be advantage to our allies,

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<v Speaker 3>especially in a first mover advantage. You usually the first

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<v Speaker 3>person that makes the deal gets the best deal.

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<v Speaker 1>So if you think will be first, it's their choice.

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<v Speaker 2>Is there a handful of countries that you expect to

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<v Speaker 2>have a deal before the ninety days is up.

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<v Speaker 3>Oh, I think there could be numerous countries, and it

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<v Speaker 3>may not be the actual trade document, but we will

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<v Speaker 3>have an agreement in principle and be able to move

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<v Speaker 3>forward from there.

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<v Speaker 2>So we're talking about a dozen or seventy plus.

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<v Speaker 1>I think it's going to depend.

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<v Speaker 3>But we're going to move with all deliberate speed, and

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<v Speaker 3>again it's going to be a process. It's going to

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<v Speaker 3>be USTR, who just has mountains of data that they've

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<v Speaker 3>been collecting over the years. Because, in a funny way,

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<v Speaker 3>the terriffs are the easiest part. So a country with

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<v Speaker 3>high tariffs you can just say, okay, this this, get

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<v Speaker 3>rid of it. It's the non tariff trade barriers that

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<v Speaker 3>are more insidious, more difficult spot and it's probably going

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<v Speaker 3>to take a little longer to exercise those demons.

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<v Speaker 2>When you said you weren't part of the rates in

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<v Speaker 2>that chart that the President held in the Rose Garden,

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<v Speaker 2>is he taking a maximist approach? Neil Dutterer recently wrote

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<v Speaker 2>that President Donald Trump has cracked a lot of eggs,

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<v Speaker 2>and now Scott Bessett's treasure secretary needs to make an omelet.

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<v Speaker 2>Is that how you view this situation right now?

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<v Speaker 3>I view not giving away negotiating secrets on worldwide television

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<v Speaker 3>as the essence of negotiating.

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<v Speaker 2>You recently talked about getting deals done quickly with partners

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<v Speaker 2>to then confront China together. When you're in these negotiations

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<v Speaker 2>with trading partners, are you looking for them to offer

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<v Speaker 2>up something to combat Beijing?

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<v Speaker 3>Well, I think combats an aggressive word. But look, I

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<v Speaker 3>think now that we have had the China terriffs in place,

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<v Speaker 3>that they are going to want to have some protection

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<v Speaker 3>from Chinese goods flooding their markets. That China's business model

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<v Speaker 3>is like from that Disney movie where the brooms are

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<v Speaker 3>carrying the buckets, like they're not going to stop manufacturing

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<v Speaker 3>because the US.

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<v Speaker 1>Has a terriff wall up. So those goods are going

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<v Speaker 1>to go somewhere.

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<v Speaker 2>Where do you think they're going to dump?

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<v Speaker 1>Well, I think it depends on the good.

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<v Speaker 2>We have exemptions now though for electronics, so we still

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<v Speaker 2>expect electronics to come into the United States with the

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<v Speaker 2>smaller tariff rate, the fetanyl twenty percent.

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<v Speaker 1>But you were asking where are they going to dump?

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<v Speaker 3>I think it will depend on what is the good,

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<v Speaker 3>higher value added manufacturing goods, likely the Europe, Canada in

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<v Speaker 3>the G seven and then kind of more the bobbles

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<v Speaker 3>and knickknacks in the Global South.

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<v Speaker 2>China's Commerce ministry came out when the tarff rates were

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<v Speaker 2>going above one hundred percent and called it, quote a joke.

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<v Speaker 2>Has there been negotiations on any level between Beijing and

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<v Speaker 2>Washington right now?

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<v Speaker 3>Well, look it'll come from the top. President Trump, Chairman

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<v Speaker 3>Shee have a very good relationship and I wouldn't say

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<v Speaker 3>that these are not a joke.

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<v Speaker 1>I mean, these are big numbers.

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<v Speaker 3>I think no one thinks they're sustainable, wants them to

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<v Speaker 3>remain here.

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<v Speaker 1>But it's far from a joke.

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<v Speaker 2>Well they just say that the rate is so high

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<v Speaker 2>it's become a joke. Basically. Does it just stop trade

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<v Speaker 2>between Washington and Beijing altogether? Do you see a decoupling

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<v Speaker 2>of these two economies?

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<v Speaker 3>Well, maybe the trade minister has a different sense of humor.

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<v Speaker 3>I do, but I don't see anything funny about it.

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<v Speaker 2>Do you see a decoupling though, between Washington and Beijing?

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<v Speaker 1>There doesn't have to be. There could be.

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<v Speaker 3>There's a big deal to be done at some point.

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<v Speaker 3>But look what is different with China that is different

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<v Speaker 3>in the history of trade that normally, if you go

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<v Speaker 3>back to the big trade deals or the currency deals

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<v Speaker 3>in the eighties Applausa Acord, Louver Accord, the Reagan Auto deals,

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<v Speaker 3>our leading economic competitors were our military allies. China is

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<v Speaker 3>both our biggest economic competitor and our biggest military rival.

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<v Speaker 3>So that's going to require a special kind of formula.

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<v Speaker 2>Are you teasing out a Mara Alago accord that we

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<v Speaker 2>should be paying attention for in the future.

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<v Speaker 1>I'm not sure what you're talking about.

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<v Speaker 2>Oh, potentially getting all these trading partners together to discuss

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<v Speaker 2>fair balance trade.

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<v Speaker 1>Well, we're doing that over the next ninety days.

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<v Speaker 2>Okay. So shifts in tariff policies has had markets on edge.

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<v Speaker 2>Even the President recently remarked the bond market was quote queasy.

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<v Speaker 2>Do you have a sense of who is dumping US assets?

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<v Speaker 2>Who's been dumping US treasuries.

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<v Speaker 1>I don't think there's a dumping.

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<v Speaker 3>And I think we saw in the TIC data either

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<v Speaker 3>today or Friday that actually foreign ownerships picked up.

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<v Speaker 1>We had two, we had three big.

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<v Speaker 3>Auctions last week, and on the longer end auction ten year,

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<v Speaker 3>thirty year, we saw increase foreign competition. So I actually

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<v Speaker 3>think this is one of those occasional varshocks that you

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<v Speaker 3>get in the trading community. I think a lot of

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<v Speaker 3>people got very leverage, maybe out over their skis, and

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<v Speaker 3>then you combine that with some real money selling and

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<v Speaker 3>you get these moves.

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<v Speaker 2>So you don't think it's sovereigns. Potentially it's hedge funds unwinding.

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<v Speaker 1>I have no evidence that it's sovereigns.

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<v Speaker 3>And look emery not you, but The nature of journalism

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<v Speaker 3>is to create a headline that ten days ago when

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<v Speaker 3>tenure yields hit three ninety said, well, Secretary Besson got

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<v Speaker 3>what he wanted, he got ten year yields down.

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<v Speaker 1>But it's the wrong reason.

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<v Speaker 3>Now, I forget what they hit on Friday, maybe for

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<v Speaker 3>forty something.

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<v Speaker 1>We saw a.

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<v Speaker 2>Fifty basis move last week and ten year yield at

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<v Speaker 2>the same time the dollar was weakening nearly three percent.

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<v Speaker 2>How do you simultaneously look at that situation. It feels

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<v Speaker 2>like investors are dumping US assets.

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<v Speaker 3>Well, look, I've learned that not to look at what

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<v Speaker 3>happens the over a week. I, for better or worse,

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<v Speaker 3>have lived through a lot of these things in trading.

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<v Speaker 3>In one's personal trading history is the scar tissue that

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<v Speaker 3>sticks with you the most. I can tell you exactly

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<v Speaker 3>where I was standing in nineteen ninety eight when the

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<v Speaker 3>long term capital the bacle happened. That had nothing to

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<v Speaker 3>do with anything other than a bunch of geniuses up

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<v Speaker 3>in Greenwich who had too much leverage.

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<v Speaker 2>So you're not concerned at this moment about the US

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<v Speaker 2>dollar or the US Treasury losing safe haven asset. No,

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<v Speaker 2>we're still a.

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<v Speaker 3>Global reserve card, we are still a global reserve currency

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<v Speaker 3>that we have a strong dollar policy.

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<v Speaker 1>The dollar can go up and down to go and look.

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<v Speaker 3>Back at President Trump's first term, I don't remember the

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<v Speaker 3>exact number, but the dollar in twenty seventeen went down,

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<v Speaker 3>I can't remember seven eight nine percent, and then once

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<v Speaker 3>the tax bill was done, took off, took off the

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<v Speaker 3>remainder of his term.

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<v Speaker 2>Have you spoken to the Fed at all about contingency

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<v Speaker 2>plans though? If financial stability risks flare up.

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<v Speaker 3>Chair Powell and I have breakfast every week and we

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<v Speaker 3>discuss a wide range of things, and you know, our

0:13:16.200 --> 0:13:19.880
<v Speaker 3>staffs are always in contact. We have a market's room,

0:13:19.960 --> 0:13:24.760
<v Speaker 3>they have a market's room. But specifically, did we discuss

0:13:25.160 --> 0:13:28.240
<v Speaker 3>some kind of a break the glass? I think we're

0:13:28.280 --> 0:13:29.080
<v Speaker 3>a long way from that.

0:13:29.360 --> 0:13:31.000
<v Speaker 2>So when was the last time you guys spoke? We

0:13:31.000 --> 0:13:32.000
<v Speaker 2>had breakfast last week?

0:13:32.679 --> 0:13:36.440
<v Speaker 3>We had breakfast last week and it wasn't away game.

0:13:36.600 --> 0:13:38.160
<v Speaker 1>I was over at the Fed and.

0:13:38.080 --> 0:13:40.080
<v Speaker 2>No concern so far from the Fed chair and what

0:13:40.120 --> 0:13:41.440
<v Speaker 2>he saw on the treasury market.

0:13:42.360 --> 0:13:45.400
<v Speaker 1>I think we would have heard from the Fed chair.

0:13:45.520 --> 0:13:49.840
<v Speaker 3>I think we heard from Governor Collins of Boston on Friday.

0:13:50.400 --> 0:13:57.440
<v Speaker 3>We heard from Governor Weller today on his thoughts on

0:13:57.480 --> 0:13:59.920
<v Speaker 3>what terrists mean so seems like businesses.

0:14:00.640 --> 0:14:02.920
<v Speaker 2>When it comes to the FED chair, his term is

0:14:03.000 --> 0:14:06.480
<v Speaker 2>up May twenty twenty six, so we're almost twelve months

0:14:06.480 --> 0:14:07.840
<v Speaker 2>out from that. When are you going to start to

0:14:07.840 --> 0:14:10.120
<v Speaker 2>think about have these discussions with the president about who

0:14:10.200 --> 0:14:11.080
<v Speaker 2>should lead the FED?

0:14:11.200 --> 0:14:12.600
<v Speaker 1>Well, we think about it all the time.

0:14:12.640 --> 0:14:17.560
<v Speaker 3>I think, when are we going to start the interviewing candidates?

0:14:17.600 --> 0:14:19.200
<v Speaker 1>And that'll be some time in the fall.

0:14:19.360 --> 0:14:22.040
<v Speaker 2>In the fall, so about six months lead time. The

0:14:22.120 --> 0:14:24.720
<v Speaker 2>US Supreme Court recently came out with the ruling that

0:14:24.760 --> 0:14:27.640
<v Speaker 2>the executive branch, the president for now could oust top

0:14:27.680 --> 0:14:31.120
<v Speaker 2>officials at independent agencies, and that has some individuals in

0:14:31.160 --> 0:14:33.360
<v Speaker 2>the market a little bit concerned about what this could

0:14:33.360 --> 0:14:35.640
<v Speaker 2>mean for the independence of the FED, which is really

0:14:35.720 --> 0:14:38.600
<v Speaker 2>a cherished pillar of wanting to invest in America. Do

0:14:38.600 --> 0:14:42.480
<v Speaker 2>you have any concern about potentially President Trump ousting FED

0:14:42.560 --> 0:14:44.640
<v Speaker 2>Chair J Powell or the independence of the Fed?

0:14:44.760 --> 0:14:46.479
<v Speaker 1>Well and Marie, I've.

0:14:47.840 --> 0:14:53.640
<v Speaker 3>Repeatedly said that the FED has two duties, and I

0:14:53.720 --> 0:14:56.560
<v Speaker 3>believe that monetary policy is a jewel box that's got

0:14:56.600 --> 0:15:00.480
<v Speaker 3>to be preserved, and then they have regulatory policies, and

0:15:01.000 --> 0:15:03.800
<v Speaker 3>I think we can have more of a discussion because

0:15:03.800 --> 0:15:07.920
<v Speaker 3>the FED is one among three bank regulators, and there's

0:15:07.960 --> 0:15:12.160
<v Speaker 3>the FED Controller of the currency and the FDICE. So

0:15:12.520 --> 0:15:17.040
<v Speaker 3>I think it's very easy to delineate between those two.

0:15:17.280 --> 0:15:21.320
<v Speaker 2>So at the moment, no concern, no concern. When you

0:15:21.440 --> 0:15:23.720
<v Speaker 2>talk to FED Chair j Palet, at the moment, doesn't

0:15:23.720 --> 0:15:25.400
<v Speaker 2>sound like they feel like they need to step in

0:15:25.440 --> 0:15:27.960
<v Speaker 2>on this unraveling we saw last week with the bond market.

0:15:28.480 --> 0:15:31.120
<v Speaker 2>Does the Treasury have any plans to do something if

0:15:31.120 --> 0:15:33.040
<v Speaker 2>this was to become more unnerving?

0:15:33.320 --> 0:15:37.280
<v Speaker 3>Well, look, the Treasury has lots of things we can do,

0:15:39.520 --> 0:15:41.600
<v Speaker 3>but again I think we're a long way.

0:15:41.400 --> 0:15:43.600
<v Speaker 2>From that, but all options would be on the table.

0:15:44.280 --> 0:15:49.400
<v Speaker 3>Sure, But again we have a big toolkit that we

0:15:49.440 --> 0:15:53.920
<v Speaker 3>can roll out. We do regular off the run buybacks.

0:15:54.160 --> 0:15:57.520
<v Speaker 3>We could up the buybacks if we wanted.

0:15:57.920 --> 0:16:01.520
<v Speaker 2>So just finally, I want to get your thoughts on

0:16:01.600 --> 0:16:04.560
<v Speaker 2>something you told me John and lisaon February, which was

0:16:04.600 --> 0:16:07.320
<v Speaker 2>that in your old world, you would be that person

0:16:07.600 --> 0:16:10.240
<v Speaker 2>with your ear against the door trying to understand what

0:16:10.280 --> 0:16:13.560
<v Speaker 2>policy makers were doing, so then you could predict where

0:16:13.600 --> 0:16:16.840
<v Speaker 2>financial markets would go in this moment where we hear

0:16:16.880 --> 0:16:20.320
<v Speaker 2>from top executives constantly. Today it was the Goldman Sachs CEO.

0:16:20.840 --> 0:16:24.800
<v Speaker 2>Last week it was JB. Diamond, And there uncertainty, especially

0:16:24.840 --> 0:16:28.200
<v Speaker 2>around tariff policy. What advice would you be giving to

0:16:28.240 --> 0:16:29.240
<v Speaker 2>your old self.

0:16:30.520 --> 0:16:35.360
<v Speaker 3>To look at the whole policy, because again, not you,

0:16:35.400 --> 0:16:40.280
<v Speaker 3>but others in the media can pick one factor. So

0:16:40.400 --> 0:16:44.440
<v Speaker 3>right now it's tariff tariff, tariff, But have you mentioned

0:16:44.520 --> 0:16:47.360
<v Speaker 3>we have tax tax tax coming up, We have deregulation

0:16:47.440 --> 0:16:52.880
<v Speaker 3>to regulation to regulation, so it's a mini the leg stool,

0:16:53.280 --> 0:16:56.840
<v Speaker 3>and I would try to think about what's happening. The

0:16:56.920 --> 0:17:00.440
<v Speaker 3>tariff sequencing was always going to be first, the tax

0:17:00.440 --> 0:17:04.680
<v Speaker 3>bills going very well, and I think I've been pleasantly

0:17:04.760 --> 0:17:08.840
<v Speaker 3>surprised at how quickly that's moving along. And then deregulation

0:17:09.280 --> 0:17:11.840
<v Speaker 3>from our area on the financial side and in the

0:17:11.880 --> 0:17:14.600
<v Speaker 3>rest of the economy that takes a little longer, but

0:17:14.840 --> 0:17:18.240
<v Speaker 3>that will start kicking in September, October in the fall,

0:17:18.400 --> 0:17:20.400
<v Speaker 3>and those are going to be very powerful.

0:17:20.480 --> 0:17:22.639
<v Speaker 2>I believe you described as a three leg tool, and

0:17:22.720 --> 0:17:25.760
<v Speaker 2>right now everyone is focused on one part of that leg,

0:17:25.840 --> 0:17:27.880
<v Speaker 2>and that's the tariffs. As you say, when it comes

0:17:27.920 --> 0:17:30.680
<v Speaker 2>to the tax cuts, right now, what the market is

0:17:30.760 --> 0:17:34.399
<v Speaker 2>expecting and what could get done in Congress based on

0:17:34.400 --> 0:17:37.080
<v Speaker 2>how slim the majority is for the Republicans is just

0:17:37.160 --> 0:17:38.879
<v Speaker 2>an extension of current policy.

0:17:39.320 --> 0:17:40.119
<v Speaker 1>I think that's wrong.

0:17:40.720 --> 0:17:44.720
<v Speaker 3>I think that the underreported story in the media, the

0:17:44.760 --> 0:17:47.320
<v Speaker 3>story this funder report doesn't get reported enough, is a

0:17:47.359 --> 0:17:53.320
<v Speaker 3>democratic chaos, but that the underreported story is the remarkable

0:17:53.359 --> 0:17:58.840
<v Speaker 3>Republican unity led by President Trump. Speaker Johnson first try

0:17:59.160 --> 0:18:02.200
<v Speaker 3>got it instructs out of the House for the budget.

0:18:02.520 --> 0:18:07.639
<v Speaker 3>He passed a clean CR first try. Senator or Leader

0:18:07.800 --> 0:18:12.160
<v Speaker 3>Thoone pinged it back to the House very quickly with

0:18:12.240 --> 0:18:18.280
<v Speaker 3>their instructions. And I had something along with Kevin Hassett

0:18:18.520 --> 0:18:21.359
<v Speaker 3>had in a c chair called the Big Six, which

0:18:21.400 --> 0:18:26.760
<v Speaker 3>also includes Leader Throone, Speaker Johnson, Senator Crapo, Committee Chair

0:18:26.960 --> 0:18:31.800
<v Speaker 3>Jason Smith. And everyone's very aligned. And there's going to

0:18:31.840 --> 0:18:36.840
<v Speaker 3>be a lot more bells and whistles other than in

0:18:37.040 --> 0:18:42.240
<v Speaker 3>tc other than just changing the date on TCJA.

0:18:42.520 --> 0:18:45.919
<v Speaker 2>So your pitch right now to financial market participants to

0:18:46.000 --> 0:18:49.440
<v Speaker 2>consumers is you need to see the entire picture.

0:18:50.040 --> 0:18:55.000
<v Speaker 3>Well, you need to see the entire picture. And as

0:18:55.040 --> 0:18:58.000
<v Speaker 3>President Trump said the other day, stay cool. It was

0:18:58.000 --> 0:19:01.879
<v Speaker 3>my message when I was out with you. You on April. Second,

0:19:02.520 --> 0:19:06.399
<v Speaker 3>it was to the countries. These are maximum rates, So

0:19:06.440 --> 0:19:09.399
<v Speaker 3>you ask if it was a Maximus strategy. If you

0:19:09.480 --> 0:19:13.480
<v Speaker 3>don't elevate, this is your maximum rate. So don't elevate.

0:19:13.960 --> 0:19:15.720
<v Speaker 1>You have in.

0:19:15.720 --> 0:19:19.880
<v Speaker 3>Markets the upside barrier, you don't have unlimited risk, and

0:19:20.160 --> 0:19:23.560
<v Speaker 3>then come to us and we will negotiate.

0:19:23.000 --> 0:19:23.679
<v Speaker 1>In good faith.

0:19:23.960 --> 0:19:26.879
<v Speaker 2>Can you guarantee clarity in ninety days.

0:19:28.640 --> 0:19:32.480
<v Speaker 3>I think clarity is through the eye of the beholder.

0:19:32.520 --> 0:19:34.600
<v Speaker 3>But I can guarantee you that we're going to run

0:19:34.720 --> 0:19:38.640
<v Speaker 3>a robust process, and I think the market can take

0:19:38.760 --> 0:19:39.879
<v Speaker 3>great comfort in that.

0:19:40.320 --> 0:19:42.680
<v Speaker 2>So maybe some of that uncertainty starting to evaporate.

0:19:42.880 --> 0:19:46.600
<v Speaker 3>Yeah, if we measure uncertainty by the VIS I think

0:19:46.960 --> 0:19:50.080
<v Speaker 3>that the VIX. I don't want to make market calls,

0:19:50.119 --> 0:19:54.159
<v Speaker 3>but I think that the VIC spiked and is likely peaked.

0:19:54.800 --> 0:19:57.919
<v Speaker 2>Secretary Bessant, we really appreciate your time. Of course, that

0:19:58.040 --> 0:20:01.040
<v Speaker 2>was Scott Bessant, the US Treasury Secretary here in Buenos Aires,

0:20:01.240 --> 0:20:03.760
<v Speaker 2>and his pitch to the world. It's a three legged stool.

0:20:03.800 --> 0:20:08.000
<v Speaker 2>In terms of Trump administration's policy proposals. Right now, the

0:20:08.000 --> 0:20:09.720
<v Speaker 2>market squarely focused on tariffs,