US Treasury Secretary Bessent says the Fed could observe before cutting rates and should wait until Chair nominee Warsh is in place

China:

• China has been an unreliable global partner; they have strategic petroleum reserve of some 1.2-1.3bln barrels.
• Biggest threat from China’s oil purchases is to Asian countries, not US.
• Communication with China is the key.

Iran Conflict and Oil:

• Year-end oil expectations have not moved much.
• Expects Iran conflict to end and prices to come down.
• Biggest threat to global stability is a lack of growth.
• Iranians are negotiating; have now found interlocutors who can speak for the three parts of the Iranian government.

IMF Forecasts:

• IMF, World Bank have probably overreacted with their economic forecasts.
• US very aligned now with IMF, World Bank after some initial inertia.
• Asked about IMF global growth downgrade, says he is less concerned about short-term forecasts than long-term security.

Tariffs:

• We have put in 10% Section 122 tariffs; president hasn’t opted to lift that rate to 15% at this point in time.

Inflation:

• I’m quite confident that core inflation will continue to go down.