Treasury Secretary Scott Bessent expressed disappointment, saying Powell is not clearly setting a timeline for a rate cut

Treasury Secretary Scott Bessent expressed disappointment, saying Powell is not clearly setting a timeline for a rate cut

1) USD – KRW 1,400 range to adjust Fed cut expectations
Last night, the dollar-won exchange rate (REGN) closed near 1404 won, up about 10 won from the previous day. Amid the strong dollar after Powell’s hawkish remarks, the exchange rate reached the highest level since May at the close. Marco Oviedo of XP Investientus said, “The market has adjusted some of its expectations for a rate cut in consideration of the recent Fed remarks,” adding, “There are differences among Fed members, making it difficult for the market to predict the future direction of development and the indicators are still inconclusive.” Rabobank pointed out, “The strength of new U.S. home sales can give a boost to the argument that the U.S. economy is slowing down moderately,” adding, “We should keep in mind that there are already significant Fed cuts in the market.”

2) Bessent, ‘Disappointed with Powell’
Treasury Secretary Scott Bessent expressed disappointment, saying Powell has not clearly laid out the timeline for the rate cut. “Rates are too constrained,” Bessent said. “It must be lowered,” he said. “I should have presented a target of at least 100-150 basis points of reduction by the end of this year, but it is somewhat surprising that Powell did not send such a signal.” On the other hand, Chicago Fed Governor Ostan Goolsbee said he may hesitate to cut the benchmark interest rate further. “Inflation is exceeding the Fed’s target and it is going in the wrong direction now,” he said

3) U.S. to provide $20 billion swap line to Argentina
The U.S. said it was in talks with Argentina over a $20 billion currency swap line and was ready to buy the country’s dollar bonds. It was an expression of Trump’s confidence in liberal-leaning Milay. Argentina’s financial markets surged again on news of U.S. support, with the peso jumping more than 2% and its 2035-year-old government bonds once rising about 4 cents to the dollar. “An announcement that the U.S. Treasury intends to buy Argentine government bonds directly is a factor in the country’s risk decline and even allows the Argentinian government to issue bonds in early 2026,” Adcap Grupo Financiero diagnosed

4) Copper prices soar on Indonesian mine force majeure declaration
Freeport-McMoran’s declared “force majeure” on contract supplies at its Grasburg mine in Indonesia, sending international copper prices soaring. With two people killed and five missing in a soil spill at the Grasburg mine, one of the world’s largest copper communities, Freeport expects copper sales to fall by about 4 percent in the third quarter and gold by about 6 percent from July’s forecast. The accident reveals the vulnerability of the copper market to global supply shocks

5) Taiwan to weaponize semiconductor industry
Taiwan, which has used the high-tech semiconductor industry as a shield against China’s aggression, is now testing semiconductors as a diplomatic weapon. Taiwan restricts exports to South Africa in a move that “undermines our national and public security,” imposing unilateral export controls on certain countries for the first time ever. The restrictions on exports of semiconductors reflect a strategy to achieve diplomatic goals through economic and trade policies. “Taiwan’s use of its position in the semiconductor supply chain seems to be an attempt to build a self-reliant deterrent,” said Wen-ti Sung of Atlantic Council. “In the future, governments in other countries will refer to this case and consider not only Taiwan’s carrots but also its potential sticks.”
(자료: Bloomberg News)