Bessent Says It Is Up To Trump To Decide If He Would Sue Fed Chair Nominee Kevin Warsh For Not Cutting Rates

• Bessent added that the Iranian leadership is wiring money out of the country “like crazy,” stating this is a good sign that they know the end may be near.
• He stated that the U.S. Department of the Treasury created a dollar shortage in the country, and that this strategy culminated in a “swift and grand culmination” manner when one of Iran's largest banks went under last year.
• The Iranian Ayandeh Bank collapsed in October last year after incurring nearly $5 billion in losses, according to a report by The Wall Street Journal.

U.S. Treasury Secretary Scott Bessent on Thursday stated during a Senate hearing that it is up to President Donald Trump to decide whether he would sue Federal Reserve Chair nominee Kevin Warsh for not cutting rates.

Bessent was responding to a question raised by Senator Elizabeth Warren, if the Treasury Secretary would promise that “Warsh will not be sued, will not be investigated by the Department of Justice, if he doesn't cut interest rates exactly the way that Donald Trump wants.”

President Trump nominated Warsh as his pick for the Fed Chair position last week.

Iranian Leadership Wiring Money Out ‘Like Crazy,’ Says Bessent

Bessent added that the Iranian leadership is wiring money out of the country “like crazy,” stating this is a good sign that they know the end may be near.

He stated that the U.S. Department of the Treasury created a dollar shortage in the country, and that this strategy culminated in a “swift and grand culmination” manner when one of Iran's largest banks went under last year.

“There was a run on the bank. The central bank had to print money, the Iranian currency went into a free fall, inflation exploded, and hence we’ve seen the Iranian people out on the streets,” he said.

The Iranian Ayandeh Bank collapsed in October last year after incurring nearly $5 billion in losses, according to a report by The Wall Street Journal.

Bessent On Sanctioning Russia’s Shadow Fleet

The Treasury Secretary stated that he will take “under consideration” the possibility of sanctioning Russia’s shadow fleet of oil tankers, depending on where the peace talks with the country go.

Bessent was responding to a question about the Trump administration’s policy on sanctions against Russia and related entities, and how it differs from the Biden administration’s approach.

He also stated that President Trump’s son-in-law, Jared Kushner, was a part of the Russia talks, but added that he does not have any official position in the U.S. government.

Meanwhile, U.S. equities declined in Thursday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.83%; the Invesco QQQ Trust ETF (QQQ) fell 0.85%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.73%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up by 0.46% at the time of writing.

Also See: SPY, QQQ Decline As US Equities Fall: Alphabet’s Increased AI Spending Spooks Investors

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on