Bond market clearly sees this rate cut cycle to be far more justified than the one in Sep 2024…. Bessent drops a bombshell saying interest rate sectors are already in recession… Inflation is still soaring?


US TSY SEC BESSENT REMARKS:

“Interest rate sensitive sectors are in recession, but I’m confident about 2026 growth.”

“Inflation is being driven by services rather than imported goods.”

“We should see an announcement this week regarding health care costs.”

“Prices are starting to improve.”

“It is essentially a peace negotiation involving Russia and Ukraine.”

“The broader economy is not at risk of a recession.”

“Some prices should come down within weeks, others over the next few months.”

“Lower energy prices should help bring down other prices.”

“The government shutdown caused an eleven billion dollar permanent hit to US GDP.”

“If Senate Democrats move to end the government standoff, Republicans should end the filibuster.”

“I’m confident the Ukraine Russia peace process is moving forward.”

“Trump is putting pressure on Russia to move toward ending the war.”