Potential US-China Trade Deal Imminent
Following a meeting between US President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent announced that a trade deal between the two nations could be signed as soon as the following week. In an interview with Fox Business Network, Bessent stated, “The Kuala Lumpur agreement was wrapped up around midnight last night, so I hope we’ll be exchanging signatures as soon as next week.”
China Approves TikTok Transfer Agreement
Bessent also mentioned that China has approved the TikTok transfer agreement. He expressed optimism that the process would advance in the coming weeks and months, though he did not provide further details. “In Kuala Lumpur, we finalized the TikTok agreement in terms of securing Chinese approval, and I expect that to move forward in the coming weeks and months until we see a resolution,” Bessent said.
The Chinese Ministry of Commerce released a statement Thursday asserting that Beijing would appropriately handle matters related to TikTok with Washington.
US Aid to Argentina: Supporting the Path to Elections
Bessent defended US assistance to Argentina, stating that President Javier Milei required a bridge towards the upcoming legislative elections in South America. He explained that Argentina needed help due to a history of poor financial management. “We’re helping the 47 million Argentinians, and most now want a free market,” Bessent said in an interview with Fox Business Network.
Bessent clarified that no money had been spent, as the funds came from the Treasury’s Exchange Rate Stabilization Fund, valued at $211 billion, which has been used to back Fed lending facilities during crises.
Earlier in October, the US purchased Argentine pesos and concluded a $20 billion currency swap framework with Argentina’s central bank (BCRA).
Milei expressed gratitude Thursday for a previous statement by Bessent, praising his party, La Libertad Avanza, for its “monumental” victory in the legislative elections, where they secured 40.68% of the votes.
“Thank you for your unwavering support,” Milei wrote on X (formerly Twitter), adding that he looked forward to Bessent’s upcoming visit to Argentina.
“We hope to continue working together, guided by the principles of freedom, to drive unprecedented growth in our hemisphere,” Milei added.
Fed’s Language Suggests It’s ‘Anchored in the Past’
Bessent applauded the Federal Reserve’s decision to cut interest rates by a quarter percentage point but criticized the comments casting doubt on further rate reductions this year, indicating that the institution requires significant modernization.
During Fox Business’s “Mornings with Maria” program, Bessent announced that he would conduct a second round of candidate interviews for replacing Fed Chair Jerome Powell by early December, allowing President Donald Trump to choose a successor for the holiday season.
“This Fed is anchored in the past. Its inflation estimates have been terrible this year,” Bessent said. “Their models are broken.”
Key Questions and Answers
- Q: What is the status of the US-China trade deal? A: The US and China are on track to sign a trade deal as soon as the following week, according to Treasury Secretary Scott Bessent.
- Q: Has China approved the TikTok transfer agreement? A: Yes, China has approved the TikTok transfer agreement, with Bessent expressing optimism that the process will advance in the coming weeks and months.
- Q: Why is the US providing aid to Argentina? A: The US is supporting Argentina’s path to elections, as President Javier Milei requires assistance to navigate the upcoming legislative elections.
- Q: What is the source of US aid to Argentina? A: The funds for this assistance come from the Treasury’s Exchange Rate Stabilization Fund, valued at $211 billion.
- Q: What criticism does Bessent have for the Federal Reserve? A: Bessent believes the Fed is “anchored in the past” with broken models and poor inflation estimates.
