Bessent meets Chinese Vice Premier He Lifeng — CNBC
In the United States, Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng ahead of the summit between U.S. President Donald Trump and Chinese President Xi Jinping scheduled to take place in Washington this week. According to CNBC, Bessent called the talks successful and said the sides discussed, among other things, artificial intelligence and trade.
Talks ahead of the summit
Last week, Bessent told Axios that he was ready to discuss shared risks related to artificial intelligence with China. The meeting with He Lifeng took place before Xi Jinping's visit to Washington for talks with Trump.
On Monday, Bessent was also due to give an interview to CNBC's Squawk Box program. His appearance was scheduled amid concerns among U.S. consumers over rising fuel prices, interest rates, and risks related to artificial intelligence.
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Bond yields and rates
On September 10, the U.S. Treasury bought back more than $5 billion in 10-year and 20-year Treasury bonds. Speaking before the House Financial Services Committee on September 15, Bessent called the operation successful, although the yields on the securities continued to rise afterward.
According to CNBC, since the start of the U.S. and Israeli war against Iran in late February, the yield on benchmark 10-year U.S. Treasury bonds has risen by about 100 basis points. Last week, it exceeded 5% for the first time since 2007. The yield on these securities affects long-term borrowing costs, including mortgage rates, which exceeded 7% this month for the first time in more than a year.
On September 16, the Federal Open Market Committee raised the benchmark rate to a range of 3.75–4% for the first time since 2023, citing high inflation as the reason for the decision. Trump, who appointed Kevin Warsh as chair of the Federal Reserve, has repeatedly demanded rate cuts.
