Bessent's interest rate move could make it harder for the Fed
US Treasury Secretary Scott Bessent's attempt to push down long-term market rates could make it harder for the US central bank to make interest rate decisions, according to experts Bloomberg spoke to. Lower long-term rates make it cheaper to borrow, which could stimulate the economy and increase the need for a rate hike.
- In theory, it makes the market's signals more difficult to interpret for the Federal Reserve, says Wolfe Research's chief economist Stephanie Roth.
At the same time, critics say that the buybacks do not solve the basic problem: the US's rapidly growing national debt, which has now exceeded $40,000 billion.
Crypto market
Authority on Clarity Act: "The rules will be tightened regardless"
The US crypto industry will get clearer market rules even if Congress fails to pass the Clarity Act bill. This is what the head of the regulatory authority CFTC, Michael Selig, told Bloomberg.
– We can do it through rules, we can do it through laws.
The Clarity Act could give the CFTC primary responsibility for overseeing digital assets, but it has stalled in the Senate. Selig believes that the agency has sufficient authority to act on its own if the legislation is not put in place.
The tariff crisis Trump's tariff policy
China removes tariffs on Swiss goods
Switzerland and China have agreed on an agreement that makes 99.8 percent of Swiss exports to China duty-free.
Watches, pharmaceuticals and precision instruments are covered, among other things.
While the US has tightened its tariff policy, China is trying to strengthen ties with Europe in the rivalry for global influence.
Chinese economy
Chinese real estate magnate gets life in prison
The founder of the now-collapsed real estate company Evergrande gets life in prison and all his assets are confiscated. This is reported by Reuters.
Hui Ka Yan, as the company's founder is called, made an unlikely journey from severe poverty to becoming Asia's second richest man. But when the loan crisis in his real estate company became a fact in 2021, Evergrande became a symbol of the entire real estate crisis in China.
Hui Ka Yan has pleaded guilty to eight charges, including fraud and bribery.
Swedish inflation
Erik Thedéen: Sweden is in a growth phase
The Riksbank's economists now feel more confident than before that the Swedish economy is in a growth phase. This is what Riksbank Governor Erik Thedéen said at a press conference after the interest rate announcement.
- This is driven not least by industry, which has a strong economic development and a very strong order intake, which indicates that the development will continue to be good during the autumn.
At the end of the second quarter, it also seems that consumption has increased, says Thedéen.
Today, the Riksbank left the interest rate unchanged at 1.75 percent.