Stocks Spike As Bessent Says Trade Deals Coming As Soon As This Week, Teases 'Substantial Reduction' In Tariffs

US Treasury Secretary Scott Bessent on Tuesday said during testimony before the House Appropriations Committee that trade deals may come 'as soon a this week,' and that while 'many partners have good offers,' there have been no discussions with China yet.

According to Bessent, there could be a 'substantial reduction' in tariffs on US goods, as the United States negotiates with 17 out of 18 key trade partners.

Bessent also said that the US will 'never default' on its debt, and the Treasury will not use 'gimmicks' on the debt ceiling.

Stocks spiked on the news:

Cheat Sheet:

Bessent laid out the entire strategy yesterday at the Milken conference...

"Reprivatizing the economy. On one side, we're going to be bringing down government spending, which has been crowding out the private sector. We're also going to be shedding excess labor on the government side. Then on the other side, we have a substantial financial deregulatory agenda coming."

"The private sector can re-leverage, and we're putting a special focus on community banks, small banks, small regional banks, which were very near what I would call an extinction event in the next 4-5 years. The idea is to get them lending again too."

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