Authorities say the fake banknotes many allegedly printed in Russia under a rival administration during the country’s political divide have triggered a severe cash shortage and eroded public confidence in the financial system.

According to Central Bank officials, over 1.85 billion dinars in counterfeit notes have been identified representing more than 20% of the total currency being withdrawn from circulation.

The scandal has caused long queues outside banks across Libya, with customers facing strict withdrawal limits and growing frustration over liquidity shortages.

In response, the Central Bank announced plans to inject more than 11 billion new dinars into the economy and expand electronic payment systems to stabilize the financial sector and reduce dependence on physical cash.

Economists warn, however, that without greater transparency and unified monetary policy between Libya’s rival administrations, public trust may take years to rebuild.

According to early official results, Milei’s party, La Libertad Avanza (Freedom Advances), won 41.5% of the vote in Buenos Aires province, narrowly surpassing the Peronist coalition, which garnered 40.8%. The province has long been a Peronist stronghold, making the result a historic political shift in Argentina’s modern democracy.

Nationwide, La Libertad Avanza is projected to secure 64 seats in the House of Deputies, up from 37, giving the president increased leverage to push through his economic overhaul in a deeply divided Congress.

A Mandate for Reform

Milei, a former economist and television commentator turned firebrand politician, has promised to dismantle Argentina’s bloated state apparatus, slash public spending, and stabilize the country’s spiraling inflation, which has remained among the highest in the world.

In his post election address, Milei hailed the results as “a mandate for change,” saying Argentines had chosen “freedom, responsibility, and economic discipline” over populism.

“The people have spoken clearly,” Milei said from Buenos Aires. “This victory is not for me, but for all Argentines who believe in a new direction for our country.”

Political Shift in Argentina

The results deal a major blow to Argentina’s Peronist movement, which has dominated national politics for much of the past 75 years. Once the backbone of Argentina’s working class electorate, the Peronist bloc has struggled to maintain influence amid economic stagnation, inflation, and widespread voter frustration.

Analysts say the midterm results may mark a turning point in Argentina’s political landscape, consolidating Milei’s position as one of Latin America’s most controversial yet influential leaders.

Economic Challenges Ahead

Despite the electoral win, Milei faces daunting challenges ahead. Argentina remains mired in a deep recession, with inflation exceeding 200% annually and growing public discontent over austerity measures. The president’s efforts to dollarize the economy, privatize state firms, and cut subsidies have drawn both domestic and international scrutiny.

Still, investors welcomed the election results, seeing them as a sign that Milei’s reform agenda now has a stronger political foundation to proceed.

The Proposal: Taxing Your Home to “Solve” a Crisis of Their Own Making

Australia is currently grappling with a severe housing crisis, as young families are being priced out of the market due to soaring prices and rents. The Albanese Labor government has made a commitment to construct 1.2 million new homes over the course of five years, but as of August 2025, they are already facing a significant shortfall of 250,000 homes, primarily attributed to construction delays, regulatory obstacles, and a shortage of skilled labour. In a bid to address this issue, property research firm Cotality has proposed a radical concept, known as the “spare bedroom tax”, which was recently presented at the government’s Economic Reform Roundtable in mid-August 2025, sparking a new wave of debate and discussion.

Eliza Owen and Cotality is pushing for a tax on unused bedrooms, claiming over 60% of Aussie households have just one or two people, yet most homes have three or more bedrooms. This proposed tax, potentially paired with scrapping stamp duty and introducing a land tax, aims to encourage downsizing and renting out spare rooms, supposedly shifting demand towards smaller units. However, critics argue that this tax won’t add new dwellings, instead punishing hardworking Aussies who’ve saved for their dream homes. The real issue, they claim, is years of unchecked mass immigration, foreign investor speculation, and stifling zoning laws, which have manufactured the housing crisis. The public is fiercely opposing the tax, with many calling it a “crazy idea” that targets retirees and families, rather than addressing the root causes of the crisis. Critics, including opposition figures, argue that the tax would hit middle-class asset holders hardest, pitting generations against each other, while foreign investors would snap up freed-up properties at inflated prices. With over 13 million spare bedrooms nationwide, taxing them won’t solve poverty or supply shortages, and instead, would be a regressive move that ignores real fixes like cutting immigration or easing building regulations. Treasurer Jim Chalmers is considering reforms, but the proposed tax has sparked outrage, with many calling for a reality check on the true causes of the housing crisis.

The Globalist Great Reset: Erasing Ownership for Elite Control

Here’s the bigger picture: the spare bedroom scheme is just the tip of the iceberg, exemplifying the World Economic Forum’s (WEF) “Great Reset” agenda, a master plan unveiled by WEF founder Klaus Schwab in June 2020 to radically transform global economies into a “stakeholder capitalist” model. The Great Reset is actively pushing for a major overhaul of taxes, regulations, and investments, prioritizing “equity” and sustainability, often at the direct expense of individual property rights. Klaus Schwab is using the pandemic as a catalyst to build back a greener and fairer world, with governments working together to implement wealth taxes, eliminate fossil fuel subsidies, and leverage cutting-edge technologies like AI and surveillance for what he calls the “public good.” Meanwhile, Klaus Schwab’s daughter, Nicole Schwab, is actively promoting the WEF’s ‘Great Reset’ plan, which is deliberately designed to exploit crises to gain control. Nicole Schwab explicitly reveals their strategy: use crises as a smokescreen to dismantle the existing economy and replace it with a so-called “sustainable” system, which would be firmly controlled by the elite.

Here’s the lowdown: the clique of powerful, unelected elites gathering at Davos is secretly orchestrating a massive power play, backed by over 1,000 gigantic corporations like Google, Apple, and BlackRock. Under the guise of combating inequality and climate change, they’re actually working to centralize control and reshape the global economy. The World Economic Forum’s infamous slogan, “You’ll own nothing and be happy,” is the smoking gun that exposes their true intentions. This mantra originated from a 2016 essay by Danish politician Ida Auken, published on the WEF’s website, which envisioned a world by 2030 where people would rent everything – from homes and cars to appliances and clothes – through shared services and drones. Auken painted a picture of a city where “I don’t own anything… everything you considered a product has now become a service.” The WEF amplified this idea in a video summarizing their predictions for 2030, sparking a global debate. Although Auken later backtracked, claiming it was just a thought-provoking scenario to discuss the pros and cons of technology, the damage was already done. Whether or not you believe in conspiracy theories, the fact remains that this concept perfectly encapsulates the Great Reset’s push for a subscription-based economy, where corporations own all the assets and individuals are forced to lease them, lining the pockets of Big Tech and finance giants while stripping away the security and freedom that comes with ownership.

The Great Reset ties directly to housing: Schwab’s plan emphasizes “green urban infrastructure” and ESG (environmental, social, governance) metrics to force denser living and reduce private land use, aligning with UN Sustainable Development Goals for 2030. In Australia, this manifests as the bedroom tax, which would coerce downsizing into high-rise rentals—echoing the UK’s failed 2013 “bedroom tax” that harmed vulnerable tenants without boosting supply. Pauline Hanson of One Nation have called Labor’s housing tweaks a “first step” toward this Reset, where government stakes in homes (up to 40%) morph into outright control. Globally, it’s the same script: Tax private property to fund “equitable” redistribution, while elites like amass billions during crises.  This isn’t about fairness—it’s about dependency. When you own nothing, you rent from the state-corporate nexus, losing the autonomy that homeownership provides. As property theory shows, ownership isn’t just financial; it’s tied to human dignity and happiness, fostering personhood and security. The Reset rejects that, promoting a “happy” serfdom where surveillance tracks your every move for “sustainability.” Ex-investment banker Catherine Austin Fitts says that the ‘Great Reset’ is a plan “to sell to people a vision of a world where the average person has a much smaller command on resources and assets and is subject to complete central control.”

Defending Personal Values Against Globalist Overreach

From a finance standpoint, homeownership has always been the great equalizer—building equity, hedging inflation, and passing wealth to heirs. Australia’s “homeowners’ welfare state” (as economists dub it) has fuelled middle-class prosperity, but the Reset views it as inequality’s root. Taxing spare bedrooms would accelerate wealth transfer from families to governments and corporations, widening the gap while claiming to close it. It’s politically suicidal—polls show Aussies cherish their quarter-acre dream—but globalists thrive on top-down imposition, bypassing democracy via forums like Davos.

The USA Housing Crisis: A Man-Made Supply-Demand Nightmare

But it’s not just Australia. This thing takes different shapes in different places. America’s housing market is in freefall for the average citizen, with affordability at its worst since the 2008 crash. As of mid-2025, the median sale price for an existing home stands at $435,300, a staggering 48% jump from June 2020’s $294,400. Rents average $1,382 monthly, consuming over 30% of income for half of all renters—a record high. And first-time buyers? In cities like Portland, Maine, a two-bedroom starter home lists for $400,000+, outbidding young families with cash-flush investors. The crisis spans urban, suburban, and rural areas: 76% of Americans see it worsening, with rural folks (80%) hit hardest by skyrocketing costs. At the heart is a supply shortage of 3.7-4.5 million units, per Freddie Mac and Zillow estimates. Construction starts for single-family homes dropped 6.9% in October 2024 to just 970,000 annually, far below the 1.5 million needed. Inventory sits at a 4.7-month supply—below the balanced 5-6 months—keeping prices elevated despite high mortgage rates (6.74% for 30-year fixed as of July 2025).

US housing market hijacked by BlackRock, Vanguard & State Street – RFK Jr.

The US housing market is being aggressively dominated by Wall Street giants BlackRock, Vanguard, and State Street. According to US Health Secretary Robert F. Kennedy Jr, inflation is only part of the problem, as these corporate behemoths are actively driving up prices by paying 20-50% over the asking price for single-family homes. BlackRock, Vanguard, and State Street are quietly buying up every available property, with a clear goal of controlling a massive 60% of all single-family homes in the US by 2030. RFK Jr. sounded the alarm, warning that these giants are deliberately targeting the middle class as part of their “Great Reset” agenda, which aims to leave individuals with no assets and no control. The CEO of BlackRock, Larry Fink, is actively pushing this agenda as now the chairman of the World Economic Forum. The result is a deliberate and systematic takeover of the US housing market, with the middle class firmly in the crosshairs.

WEF and BlackRock’s public plans to ban single-family homes and private cars

The Reset rejects homeownership as “inequality’s root,” promoting “happy serfdom” via surveillance and shared assets. It destabilizes markets, forces renting, and widens gaps.  Elites benefit from scarcity; policies like zoning preserve it for the wealthy.

Ownership builds equity, hedges inflation—key to middle-class prosperity. The Reset views it as a threat, pushing dependency on small space rentals. It’s the Globalist plan to have you own nothing. Alex Jones also exposed the WEF and BlackRock’s public plans to ban single-family homes and private cars, tax families, and herd us into tiny “smart cities” using a fake climate emergency.

The WEF will not control the nations

Don’t let globalist mantras like “own nothing and be happy” become policy. Happiness comes from freedom and ownership, not enforced sharing. If Australia falls for this, it’ll be a cautionary tale for the world: The Reset isn’t reset—it’s regression to feudalism, where elites own everything, and we’re just happy to rent. Stand firm; your home is your castle, not their experiment.

Written By Tatenda Belle Panashe

Bill Pulte, the head of the Federal Housing Finance Agency, broke the silence. He stepped up as a whistleblower, exposing a major cover-up with solid evidence that contradicts Federal Reserve Chairman Jerome Powell’s sworn testimony. Now, the entire institution is under scrutiny, revealing not just its physical structure but also the deceitful culture that supports it. This scandal goes beyond Powell; it shows the Federal Reserve’s true colors as a government-like cartel. Lying to Congress isn’t just a mistake; it’s a serious federal crime. If an average citizen lied to a Senate committee, they’d face jail time. But Powell seems to escape unscathed, living in luxury while others would be punished. This glaring double standard is what former President Trump has just taken aim at.

The Federal Reserve has never really been a public entity; it operates as a private organization led by unelected individuals who lack accountability to the people. Powell’s exposure marks the beginning of a long-overdue reckoning. Trump’s message is straightforward: resign, face criminal charges, or get removed. This isn’t just for show; it’s a firm stance. The era of bankers getting away with everything is coming to an end. The economy won’t be ruled by global financiers anymore. The President is holding the Federal Reserve accountable—not out of spite, but to seek justice. For every worker burdened by inflation, every small business ruined by rising interest rates, and every citizen misled—justice is on the way.

The Fed’s $2.5 Billion Taj Mahal: A Case Study in Why We Must Abolish the Federal Reserve

We’re talking rooftop gardens, private dining rooms, governors’ elevators, and even Italian beehives. Italian beehives! While ordinary people are scraping by under crushing inflation and sky-high interest rates, the Fed’s building itself a palace on the National Mall, and they’re doing it in near secrecy. This isn’t just a renovation; it’s a monument to arrogance and a screaming case for why they must abolish the Federal Reserve once and for all. G. Edward Griffin, author of The Creature from Jekyll Island: A Second Look at the Federal Reserve, lists seven solid reasons to abolish the Federal Reserve.

The $2.5 Billion Boondoggle: A Breakdown

Let’s start with the numbers. In 2019, the Fed pegged the cost of renovating its Marriner S. Eccles and FRB-East buildings at $1.9 billion. By 2025, that figure has skyrocketed to $2.5 billion—a 30% jump. Inflation, they say. Rising steel and cement costs, they claim. But let’s cut through the fog: $2.5 billion for two buildings that house 2,500 employees works out to $1 million per employee. Compare that to the Department of Homeland Security’s $250 million renovation of 450,000 square feet for the same number of staff at the Ronald Reagan Building just down the road. The Fed’s project is ten times more expensive. For what? A “critical backlog of upgrades”? Or a gilded headquarters for an institution that’s been fleecing the American people for decades? The Eccles Building, built in 1937 for $3.4 million (about $77 million in 2025 dollars), has served the Fed for nearly 90 years. Suddenly, it’s not good enough? The Fed claims outdated systems, modern building codes, and security needs justify the cost. But planning documents from 2021, reviewed by the Senate Banking Committee, tell a different story: private dining rooms, rooftop terraces for “urban wildlife and pollinators,” ornate water features, and those infamous Italian beehives. Federal Reserve Chair Jerome Powell testified in June 2025 that there are “no VIP dining rooms, no special elevators, no water features, no beehives.” Yet the documents say otherwise. Either Powell’s misled Congress, or the Fed’s planning a bait-and-switch. Either way, the secrecy reeks of an institution that thinks it’s above accountability.

The Fed’s Financial Failure: Bleeding Red Ink

Here’s the kicker: the Fed isn’t even solvent right now. For decades, it raked in profits, sending billions to the U.S. Treasury—$97.7 billion in 2015 alone. But since 2022, it’s been hemorrhaging money: $114.6 billion in losses in 2023, $77.5 billion in 2024, and a cumulative $233 billion over three years. Why? Because Powell’s rate hikes to fight the inflation the Fed helped create have spiked the interest it pays on bank reserves, outpacing its bond earnings. The Fed’s securities portfolio is underwater to the tune of $220 billion since mid-2022, with projections of $1.5 trillion in losses over the coming years. Now, the Fed will tell you it’s not “taxpayer-funded” because it lives off its investments and bank fees. Don’t fall for it. When the Fed loses money, it stops sending profits to the Treasury, which means less revenue for public programs. That shortfall hits taxpayers indirectly. So, while in the US you’re paying 6% on your mortgage and $4 for a loaf of bread, the Fed’s burning $2.5 billion on a headquarters it can’t afford. If this isn’t a case for dismantling an institution that’s lost its way, I don’t know what is.

The Fed’s Arrogance: A Symptom of a Broken System

This $2.5 billion renovation isn’t just a bad budget decision: it’s a symptom of the Fed’s fundamental flaws. Since its creation in 1913, the Federal Reserve has operated as a quasi-private fiefdom, answerable to neither Congress nor the American people. It manipulates interest rates, prints money out of thin air, and fuels inflation that erodes your savings. Now, it’s building a $2.5 billion monument to itself while the economy groans under its policies. Senator Cynthia Lummis nailed it: “The Federal Reserve hasn’t earned a dime in years but somehow found $2.5 billion to build a modern-day Palace of Versailles. No accountability. Just arrogance.” Senator Tim Scott has called for Powell’s censure over misleading testimony, and this is taxpayer-funded excess at its worst.

Why Abolish the Fed? This $2.5 billion debacle is just the latest reason to abolish the Federal Reserve. Let’s be clear: the Fed isn’t a neutral referee; it’s a central planner that distorts markets, punishes savers, and rewards Wall Street. Its easy-money policies fueled the 2008 financial crisis and the post-COVID inflation surge. Its independence shields it from accountability, letting it spend billions on luxury headquarters while Main Street struggles. And its very existence undermines the free market principles. Abolishing the Fed would mean returning to sound money—perhaps a gold-backed currency or a ascended competition. It would force Congress to take responsibility for monetary policy, not unelected bankers. It would end the cycle of boom-and-bust economics driven by artificial interest rates. And it would stop unelected elites from building $2.5 billion palaces while the rest of us pay the price.

The Path Forward: End the Fed

This $2.5 billion travesty demands action. Abolish the Federal Reserve. It’s time to end this century-old experiment in central banking. Return to sound money and let markets, not bureaucrats, set interest rates. If the Fed won’t go quietly, Congress must force open its books. Every penny of this $2.5 billion must be accounted for. The Fed’s independence has gone too far. Congress must rein it in with audits and budget controls. Scrap the beehives, terraces, and private elevators. Build a functional office, not a palace. The Federal Reserve’s $2.5 billion headquarters rebuild is more than a waste of money; it’s a symbol of everything wrong with centralized power. While Americans struggle under the Fed’s inflation and rate hikes, it’s splurging on a Taj Mahal for unelected elites. This isn’t just bad policy—it’s a betrayal of the American people. The Fed’s time is up. It’s time to abolish this relic of 1913, restore sound money, and put economic power back in the hands of the people. Let’s demand transparency, accountability, and an end to the Federal Reserve’s reign. The future of our economy depends on it.

Written By Tatenda Belle Panashe

The Fed’s Inflation Lies

Last month, Jerome Powell and the Federal Reserve maintained interest rates within the range of 4.25% to 4.50% and promptly attributed the risk of inflation to President Trump’s tariffs. This is the same Federal Reserve that has been responsible for printing trillions of dollars, orchestrating bailouts for Wall Street, and sustaining near-zero interest rates for an entire decade. Now, they expect the public to accept that trade policy is the primary issue at hand. FBI Director Kash Patel says that the Federal Reserve isn’t a public government entity—it’s a private one, manipulating currency for its own gain. That needs to be stopped.

It is evident that Powell’s concerns extend beyond inflation; his focus lies on who wields control over the global economy. The reality is that inflation cannot be solely blamed on tariffs; rather, it is the result of $8 trillion in quantitative easing, the provision of free capital to the stock market, and irresponsible government spending facilitated by low-interest debt. For the past fifteen years, the Federal Reserve and the Treasury have been fuelling asset bubbles, benefiting firms like BlackRock and JPMorgan, all while real wages have remained stagnant. Their recent posturing about price stability appears disingenuous. The Federal Reserve continues to operate as an unelected cartel, prioritizing the interests of its banking partners while misleading the public and discreetly supporting the same Wall Street institutions that instigated the 2008 financial crisis.

How the Fed Cartel Engineered America’s Financial Enslavement

A significant portion of the American populace remains unaware of the origins of their current economic predicament. While many attribute the crisis to the actions of Democrats or Republicans, they overlook the true behemoth: the Federal Reserve. This unelected and seemingly unaccountable financial institution has accumulated a staggering $37 trillion in national debt, contributed to over $100 trillion in private liabilities, and has set in motion a precarious situation with $200 trillion in unfunded obligations. However, when inquiring about the Federal Reserve, the average citizen often responds with confusion. This lack of awareness is not coincidental; the system has been crafted in obscurity and continues to flourish in an environment of ignorance.

The Federal Reserve, contrary to its name, is neither a government entity nor a reserve in the traditional sense. It operates as a privately owned consortium of banks that holds the exclusive and monopolistic authority to create U.S. currency. Over a century ago, Congress relinquished its constitutional responsibility to issue money, transferring this power to what can be described as a financial cartel. This arrangement allows the issuance of “Federal Reserve Notes,” which are fundamentally debt instruments. Each dollar that enters circulation is essentially borrowed, yet the interest required for repayment is never generated, resulting in a perpetual imbalance where debt consistently surpasses the money supply. Consequently, this system effectively ensnares the nation in a carefully constructed cycle of ongoing economic subservience.

How the Fed Cartel Engineered America’s Financial Enslavement

The dollar that individuals carry is not merely a form of currency; it represents a claim on future labor. It functions as a debt instrument that inherently guarantees continued inflation. Since the establishment of the Federal Reserve in 1913, the dollar has lost more than 97% of its purchasing power. This persistent inflation is not an unforeseen consequence but rather a deliberate aspect of the system’s design. The beneficiaries of this arrangement are not the working-class Americans but rather a select elite who control the financial framework. A small coalition of mega-banks, hedge funds, and large corporations dominates this economic hierarchy.

The operational mechanism of the Federal Reserve is straightforward: it generates money from thin air, extends loans to the government at interest, and recoups those funds through taxpayer contributions, austerity measures, and inflation. In 2025 alone, the U.S. government is projected to allocate over $1 trillion solely for interest payments. These funds do not support essential services like education or healthcare; instead, they serve as tribute to financial institutions. As this occurs, wages stagnate, savings diminish, and purchasing power erodes. This scenario cannot be classified as capitalism; it more closely resembles a form of high-tech feudalism—a global plantation system where central bankers assume the role of a new aristocracy.

The Federal Reserve’s operations are fundamentally undemocratic, as neither Congress nor the President possesses the authority to direct its actions. This so-called “fourth branch of government” functions in secrecy, operating without adequate oversight. Attempts to audit the Federal Reserve have often been met with extreme resistance, raising questions about the motives behind such opposition. A comprehensive audit could potentially reveal 21,000 undisclosed transactions, trillions of dollars in preferential loans, and what could be characterized as the largest financial heist in history—not executed by traditional criminals, but by central bankers dressed in tailored suits. Despite this, a significant portion of the American public has been led to perceive the Federal Reserve as a wise and benevolent entity. In reality, it operates as a legalized cartel that primarily serves to enrich its stakeholders. Its policies disproportionately benefit large banks, incentivize reckless speculation, and stifle competition. The Federal Reserve has assumed a god-like role during crises, notably in 2008, again in 2020, and now amidst the inflationary turmoil of the 2020s. It claims to combat inflation by orchestrating recessions and job losses, suggesting that the hardships faced by the public are merely tools in their corrupt strategy to maintain economic “balance.”

Had the government opted to issue debt-free currency instead of borrowing from the Federal Reserve, the national debt could potentially stand at zero today. This approach would eliminate the necessity for the Internal Revenue Service, avert austerity measures, and prevent the current generation from burdening future generations with the consequences of today’s financial mismanagement. Historically, Thomas Jefferson cautioned that permitting private banks to control the issuance of currency would lead to a situation where “the banks and corporations that will grow up around them will deprive the people of all property.” We are witnessing the manifestation of that warning in contemporary society.

It is imperative to confront the reality of the Federal Reserve’s role in the decline of America. The institution has eroded the middle class, stifled innovation, and ensnared the nation in perpetual debt. The path forward lies in dismantling the Federal Reserve, reinstating constitutional currency, and constructing a financial system that prioritizes the needs of the populace over those of exploitative entities.

Written By Tatenda Belle Panashe

The decision, however, revealed a rare three-way split among Monetary Policy Committee (MPC) members, suggesting diverging views within the central bank on the pace and timing of future cuts. The vote breakdown was 5-4 in favour of a 0.25% reduction, with two members advocating for a larger 50 bps cut, one preferring no change, and the majority opting for the more cautious 25 bps move.

BoE Governor Andrew Bailey acknowledged the challenging trade environment created by U.S. tariffs on British exports, which are expected to slow industrial activity and consumer confidence. “This cut is a preemptive step to ensure that inflation remains within target while supporting demand,” Bailey said at a post-decision press conference.

While inflation remains above the central bank’s 2% target, it has been on a steady downward trajectory, giving policymakers room to act. Markets had largely priced in the rate cut, but the internal disagreement within the MPC dampened expectations for aggressive rate reductions in the coming months.

Still, the BoE signaled that it is prepared to lower rates further if economic data continues to soften. Analysts now predict at least one more rate cut by the end of the third quarter, barring a surprise rebound in global trade or domestic inflation.

The pound weakened slightly against the dollar following the announcement, reflecting investor expectations of a looser monetary stance.

This rate cut comes as other major central banks, including the U.S. Federal Reserve and the European Central Bank, weigh their own paths forward in an environment marked by slower global growth and trade tensions.

Trump’s comments came hours after U.S. Treasury Secretary Scott Bessent called current tariff levels “unsustainable” and said he expects a “de-escalation” in the trade war between the world’s two largest economies.

Under Trump’s latest trade directive, the U.S. imposed 145% import taxes on Chinese goods, prompting Beijing to retaliate with 125% tariffs on U.S. exports. The aggressive tariff regime has impacted global markets, slowed international trade, and triggered investor concerns over rising inflation and borrowing costs in the United States.

“The tariffs are hurting both sides, and neither side thinks the status quo is sustainable,” Bessent reportedly said during a closed-door policy briefing. His remarks, confirmed by two sources familiar with the meeting, were first reported by Bloomberg News and triggered a 2.5% rally in the S&P 500 index.

Despite the market rebound, uncertainty remains high. Economists warn that continued trade tensions may further strain U.S. consumers and exporters already grappling with higher prices and global supply chain disruptions.

Trump, speaking after the ceremonial swearing-in of Paul Atkins as the new chair of the Securities and Exchange Commission, acknowledged the market gains but remained cautious about future negotiations.

“China is going to be a slog in terms of the negotiations,” Bessent added, according to a transcript obtained by the Associated Press.

The White House has not confirmed any formal plans to alter existing tariffs, but analysts say the latest remarks could open the door to renewed talks aimed at easing tensions and stabilizing markets.