US Treasury Secretary Scott Bessent said that his country’s delegation managed to reach a “very important agreement” with Chinese Deputy Prime Minister He Lifeng. What exactly is this about?
Has the US reached an agreement with China?
During an interview with NBC, Bessent said that an agreement was reached in Kuala Lumpur, Malaysia, which will now allow US President Donald Trump and Chinese leader Xi Jinping to clarify the new trade agreement. It will be about: balancing American trade with the Chinese, Chinese purchases of American soybeans and other agricultural products, fighting the fentanyl crisis in the US and, above all, the issue of rare earth metals.
Besset also said Trump would not impose 100 percent tariffs on Chinese goods.
No, I don’t expect that, and I also anticipate that we will get some sort of deferral of rare earth export controls that the Chinese have been talking about
– he clarified.
Beijing announced a few weeks ago that it was introducing a licensing system for the purchase of rare earth metals. Considering that China is the place where most of these elements are mined in the world, this was blackmail aimed primarily at the USA. For the first time in a decade, someone tried to show Americans’ weakness in such a brazen and direct way.
There can be no illusions: the US-China temporary agreement means only temporary peace, and the problem will return sooner or later.
Bitcoin rate
Bitcoin has reacted to everything so far with increases. Currently, 1 BTC costs USD 115,452.
Ether broke USD 4,000, which is very important information because it is a level that has not been broken for months, so now it is a strong “floor” in the event of further declines.
We also have Wednesday’s meeting of the Fed authorities, during which the Federal Reserve will almost certainly cut interest rates. by 25 bp. This is another important information for the markets.
In addition, Jerome Powell may announce the end of quantitative tightening, which may also give an upward impulse for altcoins and ether. Interest rate reduction is already in price, the end of tightening (not to mention the start of easing) has not yet been priced in by investors.
