The United States "retreats" twice a week, and Bessenet becomes Wall Street's "last hope"

At a time when the global market is engulfed in panic, Treasury Secretary Becerra has become a key figure in stabilizing Trump's extreme tariff policies. Market rumors suggest that Becerra played an important role behind the decision to grant a 90-day tariff exemption this week and the subsequent "concessions" on electronic products. Investors are reassessing the true influence of this former hedge fund manager.

Key Conversations from Mar-a-Lago

According to Shanghai Securities Journal, on April 9th, Eastern Time, U.S. President Trump posted on social media that he had authorized a 90-day suspension of tariffs on certain countries, during which tariffs would be significantly reduced to 10%. By April 11th, the U.S. Customs and Border Protection (CBP) quietly released updated tariff schedules, exempting import duties on categories of goods including automatic data processors, computers, communication equipment, monitors and modules, and semiconductors, unaffected by "reciprocal tariffs."

It is widely believed that Treasury Secretary Becerra played a significant role in this week's series of concession decisions.

According to media reports, on the Navy One helicopter flying back to Washington from Mar-a-Lago last Sunday, Becerra suggested to Trump to set an "end" to the tariffs in order to provide breathing room for the market. Trump was initially reluctant to concede. However, as the U.S. stock market crashed and an unusual phenomenon of U.S. Treasury sell-offs emerged, Trump ultimately agreed to suspend tariff measures for most countries.

Regarding the exemption for electronic products, social media reports indicate that after multiple calls with Apple CEO Tim Cook and other CEOs, it was Becerra who ultimately facilitated the exemption for electronic products, while Navarro and Luttig have been marginalized.

This scene reveals the high-risk balancing act being performed by the 62-year-old former hedge fund manager—executing Trump's populist economic policies while maintaining the traditional conservative economic principles revered by Wall Street veterans.

Rare Confrontation at the Treasury Welcome Reception

On April 9th, at a gathering that is traditionally supposed to be light-hearted to welcome the new Treasury Secretary, the atmosphere was unusually serious. This dinner organized by former Treasury Secretary Mnuchin witnessed a heated debate over tariff policies.

"The atmosphere was very serious," said 99-year-old former Treasury Secretary Michael Blumenfeld in an interview with the media. According to attendees, Becerra was pressed by former Treasury Secretaries present about the strategy behind the tariffs and their impact on the economy, and when questioned about Trump's actions, Becerra sometimes even raised his voice.**

The attendees included former Treasury Secretaries Robert Rubin, Henry Paulson, Larry Summers, Timothy Geithner, and Jack Lew. The previous Treasury Secretary, Janet Yellen, was absent due to a trip to Australia. It is reported that Larry Summers, the Treasury Secretary during the Clinton administration, shared a story about how George Shultz, the Treasury Secretary during the Nixon administration, stood firm on principle issues.

Blumenauer expressed his wishes for Bessent to have good luck in this complex position, especially when "what is best for the country is different from what the president wants."

Mnuchin 2.0

After Trump's tariff policy triggered a market crash, many investors expressed confusion over Bessent's stance.

According to several well-known investors on X (formerly Twitter), they initially thought Bessent would be a rational voice in the White House, like Trump's first Treasury Secretary Mnuchin, to curb the president's extreme trade tendencies.

"The only reason the market is interested in Bessent," said Spencer T. Hakimian, founder of hedge fund Tolou Capital Management on social media, "is because they see him as Mnuchin 2.0—a traditional Wall Street figure who won't make things that bad."

By Monday and Tuesday of this week, a significant turn of events occurred, with investors selling off all U.S. assets. Stocks and bonds, including the super-safe U.S. Treasury bonds, were sold off simultaneously, leading to a sharp decline in the dollar.

This has intensified investor dissatisfaction with Bessent. Earlier this year in February, Bessent stated that he would not issue more long-term Treasury bonds to address the growing U.S. deficit. This became the main reason hedge funds began betting on rising prices for long-term U.S. Treasury bonds.

"The Adult in the Room"

As global market panic spread, Bessent gradually gained greater influence within the Trump administration. Media reports indicated that a senior official described Bessent as "the adult in the room," stating that he had won the president's favor. Trump is now giving Bessent a leadership role in negotiations with other countries.

Despite a 90-day pause, the global economy may still face the highest tariff levels in a century, which could suppress growth and exacerbate inflationary pressures. JPMorgan's chief interest rate strategist warned in a report to clients on Thursday: "If you think this is over, then you are mistaken."

On Friday, investors sold off key U.S. bonds again, indicating that market confidence remains fragile.

For investors, it is crucial to reassess the trade policy priorities of the Trump administration. As trade conflicts escalate, market volatility may persist, and Bessent's role in this may continue to spark controversy—whether he is a driver of Trump's tariff war or the stabilizer Wall Street hopes for, the answer to this question will gradually unfold in the coming months