By Joe Light

Treasury Secretary Scott Bessent on Monday tried to reassure a group of investors and power brokers that the U.S. is still "the premier destination for international capital." Only a month ago, Bessent told a group of bankers it is "Main Street's turn" after the wealth spurred by globalization accrued to Wall Street.

Bessent delivered his remarks at the Milken Institute Global Conference at the Beverly Hilton in Los Angeles after off one of the most volatile months for stocks in history. After falling more than 10% during April, the S&P 500 finished the month about even as traders digested President Donald Trump's tariff announcements and delays. Some analysts have dubbed the broad-based selloff of U.S. stocks, Treasuries, and the dollar the "Sell America" trade.

In prepared remarks and a Q&A with Milken Institute chairman Michael Milken, Bessent defended Trump's policies as ultimately improving U.S. investment prospects.

"The administration's goal is to make it even more appealing for investors like you," said Bessent, addressing the audience. He said that Trump would prove wrong "critics in establishment circles."

Trump officials have said that the administration is close to announcing deals with major trading partners that would at least somewhat alleviate the tariff threat that has upended markets over the past 30 days. Trump announced and then suspended for 90 days major levies against most countries, except for China, which has seen tariffs go up to 145% for most products.

In his conversation with Milken, who served about two years in prison for securities violations in the early 1990s and was pardoned by Trump in 2020, Bessent said Trump's policies would ultimately bring down Treasury rates by reducing the "credit risk" of the U.S. government. He said that Trump's tariff push was part of a bigger strategy to grow the U.S. by shrinking government, cutting regulation, and "re-privatizing" the economy.

In response to tariff uncertainty, dozens of companies have pulled earnings guidance for the rest of the year. Global shipping from China has frozen, with some retailers warning of product shortages as soon as this month. Consumer sentiment has fallen, and Trump's job approval rating is about 10 percentage points lower than at the beginning of his term. Trump has called the polls "fake."

Bessent on Monday drew a parallel between Trump's push in his first term to convince European members of NATO to spend more on defense to the current effort to rebalance trade.

"Getting better terms of trade is not always a straight line, it's not always a pleasant process, but I think at the end, the trading relationships will be stronger, our securities and values ties will still be there," Bessent said.

Write to Joe Light at joe.light@barrons.com

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May 05, 2025 13:22 ET (17:22 GMT)

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