In a statement that has sparked debate, the US Treasury Secretary, speaking to a room of billionaires in Idaho, drew comparisons between former US President Donald Trump and financier George Soros, noting their shared impatience when engaging in high-stakes deals. This comparison comes at a time of growing questions about the future of US trade policy and its impact on the global economy.
According to sources present at the meeting, the Secretary emphasized that Trump and Soros are similar in temperament, demands, and impatience. He mentioned advising Trump to be patient when making trade-related decisions.
Despite this, the Secretary praised Trump's unique ability to identify problems and find solutions, but noted that Trump could sometimes be impatient in implementing these solutions. Addressing the impact of tariffs on inflation, the Secretary downplayed the effect and predicted two interest rate cuts this year, adding that long-term borrowing costs are likely to remain consistent with pre-pandemic levels.
Prior to becoming Treasury Secretary, the Secretary worked for Soros Fund Management twice, eventually leaving after rising to the position of Chief Investment Officer to start his own hedge fund.
It is unclear how much influence the Secretary has had on Trump's recent decisions. Trump recently announced via social media a series of new tariffs on trading partners, which are scheduled to take effect on August 1, rather than the form of bilateral agreements recommended by the White House earlier. This included a 50% tariff on Brazilian goods, due to political disputes with the South American country. The rate is surprising because the United States has a trade surplus with Brazil.
The Secretary played a key role in negotiations with China, Japan, and other Asian countries, and contributed to shaping Trump's trade policy, an unusual position for a Treasury Secretary.
The Secretary is scheduled to travel to Japan next week, although the Treasury Department stated that trade issues will not be addressed during his visit. He is also expected to meet soon with Chinese officials and Indonesia's Coordinating Minister for Economic Affairs.
The Secretary made several criticisms of former White House advisor and Tesla CEO Elon Musk, following reports of a dispute between them.
One source said that when asked about Musk forming a political party, the Secretary asked, "What party?" Then he jokingly said that Musk might get votes on Mars, referring to Musk's ambition to send humans to Mars through his space company SpaceX.
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