Overview

• Scott Bessent, U.S. Treasury Secretary, dismissed Moody’s decision to downgrade the U.S. credit rating, calling it a lagging indicator of fiscal health.
• Bessent attributed the fiscal challenges to spending under the Biden administration and emphasized efforts to reduce deficits and stimulate economic growth.
• Following discussions with Walmart CEO Doug McMillon, Bessent confirmed Walmart will absorb tariff costs as it has in previous years, mitigating potential price hikes for consumers.
• He reiterated the Federal Reserve’s ‘wait-and-see’ approach to assessing the inflationary impact of tariffs and highlighted ongoing trade negotiations with China after a recent tariff truce.
• Bessent warned that countries failing to negotiate trade agreements in good faith could face unilateral tariff measures from the U.S.