Tariffs and the $38 trillion national debt: Kevin Hassett sees ’big reductions’ in deficit while Scott Bessent sees a ‘shrinking ice cube’

The potential initial public offering (IPO) of Fannie Mae and Freddie Mac has sparked discussions among key investors, including John Paulson and Bill Ackman, regarding how the structure of the offering will impact their financial outcomes. The Treasury's involvement is also crucial in determining the success of this IPO, which could reshape the landscape of government-sponsored enterprises.

Hearings in Washington have raised concerns regarding the future of the U.S.-Mexico-Canada trade pact, with President Trump indicating a desire to renegotiate the agreement he previously signed. This has led to anxiety among various groups about the potential implications for trade relations in North America.

US solar companies are pressing Congress to take action against a permit freeze imposed by former President Trump, which they argue is hindering the growth of the solar industry. This freeze has raised concerns about the future of solar projects and investments in the sector.

The Financial Conduct Authority (FCA) has opted not to investigate Chancellor Rachel Reeves or the Treasury regarding pre-budget briefings, despite allegations from the Conservative Party suggesting potential market manipulation. The FCA's decision leaves open the possibility for future inquiries, particularly in light of ongoing concerns about the integrity of financial communications leading up to the budget announcement.

European automakers, including Renault, Porsche Holdings, and Mercedes, experienced a rise in their shares following President Trump's announcement to reverse Biden-era fuel-efficiency requirements, which regulate vehicle mileage per gallon of fuel.

US equity futures are maintaining gains as discussions arise regarding Treasury Secretary Scott Bessent potentially leading the National Economic Council alongside his current role, contingent on President Trump's expected nomination of Kevin Hassett as the next Federal Reserve chair. This development comes amid ongoing labor market data analysis.

Kevin Hassett, a longtime advisor to President Donald Trump, is viewed as a leading candidate for the position of Federal Reserve Chair. However, Gregory Peters from PGIM Fixed Income expressed skepticism about Hassett's ability to implement the rapid interest rate cuts that Trump desires, even if he is appointed to the role.

Former President Donald Trump praised Nvidia CEO Jensen Huang following a discussion about export controls affecting the company's operations. This conversation comes amid ongoing scrutiny over U.S. regulations that have impacted Nvidia's ability to export AI chips, particularly to China.