Can costs be reduced without lowering interest rates? The U.S. Treasury Secretary closely monitors the 10-year interest rate, with increased energy production and a halved deficit to ensure 3% economic growth

According to the Zhitong Finance APP, U.S. Treasury Secretary Scott Bessent stated in an interview on February 5 (Wednesday) that the Trump administration's focus on reducing borrowing costs is on the 10-year U.S. Treasury yield, rather than the Federal Reserve's benchmark short-term interest rate. He emphasized that President Trump has not called for the Federal Reserve to lower interest rates.

Bessent also reiterated his long-held view that expanding energy supply can effectively reduce inflation rates. He believes that energy prices are one of the important indicators of long-term inflation expectations for American wage earners. He pointed out that if gasoline and heating oil prices can be lowered, consumers will not only save money but also enhance their optimism about the future, thereby helping to alleviate the high inflation pressures seen in recent years.

When discussing the Federal Reserve, Bessent stated that he would only discuss actions already taken by the Federal Reserve and would not comment on its future policies. He mentioned that while the Federal Reserve's short-term benchmark interest rate is an important reference for the money market, the 10-year Treasury yield is also a benchmark for 30-year mortgage rates and other key borrowing rates. He noted that after the Federal Reserve implemented a 50 basis point rate cut in September, the 10-year U.S. Treasury yield actually rose.

In addition, Bessent mentioned that President Trump believes that if energy prices decline, the tax cuts the government is working to extend are implemented, and the economy is deregulated, then the issues of interest rates and the dollar will "resolve themselves."

In an interview with Lawrence Kudlow, who served as the Director of the National Economic Council during Trump's first term, Bessent reiterated his "3-3-3" economic policy slogan. The core goals of this policy are: to reduce the fiscal deficit from over 6% in recent years to 3% of GDP; to increase oil production by 3 million barrels per day; and to maintain economic growth at 3%.

Bessent stated, "Now that I am in office, I believe in this plan more than ever." He added that although government spending under former President Joe Biden has driven economic expansion, the new team's goal is to achieve growth led by the private sector, promoting sustainable economic development through capital expenditures and bringing manufacturing jobs back from overseas.

When asked about Elon Musk's DOGE team working at the Treasury and their access to the department's key payment systems, Bessent reiterated the message conveyed by the Treasury earlier this week.

He emphasized, "At the Treasury, our payment systems have not been affected." He also mentioned that Musk's team has read-only access to payment data, and the Treasury is conducting a study aimed at improving accountability, accuracy, and traceability to ensure that funds are directed correctly.

Bessent also stated that the so-called government efficiency department's broader efforts to address efficiency issues "will not fail." Additionally, when asked about reports that some Republican lawmakers may be considering a time-limited extension of Trump's 2017 tax cuts (most of which are set to expire at the end of this year), Bessent clearly expressed support for making the tax cuts permanent He emphasized: "President Trump has a mission. He took office to accomplish great things, and one of the major things this administration wants to achieve is to make the Tax Cuts and Jobs Act of 2017 permanent. This permanence will continue to make the United States the number one economy in global growth."