US Treasury Secretary: Two-year Treasury yields signal that the Federal Reserve should cut interest rates

US Treasury Secretary Scott Bescent said that we are seeing two-year Treasury yields have fallen below the federal funds rate. This suggests that the market believes the Federal Reserve should consider cutting interest rates. Bescent also reiterated his prediction that the window for tariff uncertainty will narrow over time and a trade deal is reached, noting that despite the panic news about a deep drop in the stock market in April, the stock market ended up essentially flat that month. "The market has had an amazing amount of wild volatility in April," he said. "When we finally get to where we are, the path will be worth it, and in the short term I think everyone should take a deep breath." (Kim Ten)