US Treasury Eyes Fed Chair Talks and Buyback Flexibility, Says Scott Bessent

U.S. Treasury Secretary Scott Bessent signaled that discussions for the next Federal Reserve Chair could begin in the fall, ahead of current Chair Jay Powell’s term ending in May 2026. In an interview with Bloomberg TV, Bessent also noted that the Treasury has the flexibility to ramp up bond buybacks if needed.

Addressing concerns over global demand for U.S. Treasuries, Bessent dismissed speculation of sovereign dumping. “There’s no evidence of sovereign sales,” he said, urging observers not to overreact to short-term fluctuations in the bond market.

Bessent also reinforced the strength of the U.S. dollar, rejecting fears about the dollar losing its safe haven status. “We remain the world’s reserve currency,” he emphasized. Reflecting on historical fluctuations, he pointed to the early years of former President Trump’s term, when the dollar dipped before rallying post-tax reform.

On the international front, Bessent expressed optimism about Argentina’s financial outlook, suggesting the country will likely repay its currency swap obligations to China. His remarks highlight ongoing U.S. interest in global financial stability.

Turning to trade, Bessent hinted that the U.S. is seeking early agreements with key countries in current tariff negotiations, suggesting first movers may secure better deals. “Usually the first person who makes the deal gets the best deal,” he stated, expecting several preliminary trade agreements within 90 days.

Bessent noted that while reducing high tariffs is relatively straightforward, addressing non-tariff barriers presents greater challenges due to their subtle and complex nature. Still, he assured that the U.S. will proceed with “deliberate speed,” guided by extensive trade data gathered by the USTR.

The Treasury’s stance underscores its proactive role in global markets and its confidence in the resilience of U.S. financial leadership.