{"id":72295,"date":"2026-09-27T14:08:16","date_gmt":"2026-09-27T18:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bessent-urges-fed-flexibility-as-trump-xi-summit-leaves-taiwan-arms-sales-in-limbo\/72295\/"},"modified":"2026-09-27T14:08:16","modified_gmt":"2026-09-27T18:08:16","slug":"bessent-urges-fed-flexibility-as-trump-xi-summit-leaves-taiwan-arms-sales-in-limbo","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bessent-urges-fed-flexibility-as-trump-xi-summit-leaves-taiwan-arms-sales-in-limbo\/72295\/","title":{"rendered":"Bessent Urges Fed Flexibility as Trump-Xi Summit Leaves Taiwan Arms Sales in Limbo"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Treasury Secretary Scott Bessent urged the Federal Reserve to maintain an &quot;open mind&quot; on interest rates,<\/strong> citing AI-driven productivity and deregulation as disinflationary forces.<\/li>\n<li><strong>U.S.-China relations remain in a &quot;tariff truce&quot; extension<\/strong> following a high-stakes summit between President Trump and President Xi Jinping, though a <strong>$14 billion Taiwan arms package<\/strong> remains on hold.<\/li>\n<li><strong>Iranian oil exports to China are expected to collapse soon,<\/strong> with Bessent reporting only <strong>15 million to 30 million barrels<\/strong> remain &quot;on the water&quot; as U.S. sanctions and naval blockades take hold.<\/li>\n<li><strong>Anthropic CEO Dario Amodei is set for a private White House dinner with President Trump,<\/strong> signaling a potential thaw in relations between the administration and the AI safety-focused firm.<\/li>\n<li><strong>A diplomatic rift has emerged between South Korea and Ukraine<\/strong> over the disclosure of North Korean POW transfers, with Seoul contemplating &quot;extra actions&quot; following a breach of confidentiality.<\/li>\n<\/ul>\n<h2>Bessent Advocates for Fed &quot;Open Mind&quot; Amid AI Boom<\/h2>\n<p>U.S. Treasury Secretary <strong>Scott Bessent<\/strong> has called on the <strong>Federal Reserve<\/strong> to adopt a more flexible stance on interest rates. Speaking on <em>Sunday Morning Futures<\/em>, Bessent argued that the U.S. economy is entering a period of significant productivity gains driven by <strong>Artificial Intelligence (AI)<\/strong> and aggressive <strong>deregulation<\/strong>. He suggested these factors could allow for faster growth without the traditional inflationary penalties, drawing parallels to the 1990s internet boom.<\/p>\n<p>Bessent noted that while <strong>core inflation<\/strong> has remained relatively subdued in recent months, the Fed must be cautious not to stifle growth. Investors tracking the State Street SPDR <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> ETF Trust (<a href=\"\/stock\/SPY\">SPY<\/a>) are closely monitoring these comments, as a shift toward a more dovish Fed policy could support valuations in the tech and AI sectors, including leaders like <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>).<\/p>\n<h2>Geopolitical Tensions: Taiwan Arms and Iranian Oil<\/h2>\n<p>Following the state visit of Chinese President <strong>Xi Jinping<\/strong>, U.S. Ambassador <strong>David Perdue<\/strong> confirmed that while the <strong>Trump administration<\/strong> has approved <strong>$11 billion<\/strong> in arms sales to Taiwan, a subsequent <strong>$14 billion<\/strong> package remains under review. Perdue emphasized that U.S. policy remains unchanged, supporting neither Taiwan independence nor coercion. However, Taiwan\u2019s representative to the U.S. has urged faster deliveries, citing the island\u2019s critical <strong>semiconductor industry<\/strong> as a pillar of global security.<\/p>\n<p>On the energy front, Bessent signaled the imminent end of <strong>Iranian oil deliveries<\/strong> to China. He cited a significant reduction in Chinese support for Tehran and estimated that only <strong>15 million barrels<\/strong> of Iranian crude remain in transit. This &quot;Operation Economic Outcast&quot; aims to asphyxiate the Iranian regime&#39;s finances through a combination of secondary sanctions on Chinese banks and a naval blockade of Iranian ports.<\/p>\n<h2>AI Leadership and Diplomatic Friction<\/h2>\n<p>In a move to consolidate U.S. leadership in &quot;superintelligence,&quot; President Trump is hosting <strong>Anthropic<\/strong> CEO <strong>Dario Amodei<\/strong> for a private dinner at the White House. This meeting follows Amodei&#39;s absence from a previous summit dinner and comes amid ongoing debates regarding AI safety and military applications. The administration has reiterated its goal to ensure the U.S. leads the world in AI while protecting consumers.<\/p>\n<p>Meanwhile, a diplomatic dispute has flared between <strong>South Korea<\/strong> and <strong>Ukraine<\/strong>. The South Korean presidency expressed &quot;strong regret&quot; after Ukrainian President <strong>Volodymyr Zelensky<\/strong> publicly disclosed the transfer of two <strong>North Korean prisoners of war (POWs)<\/strong> to Seoul. South Korea claims this violated a strict nondisclosure agreement intended to protect the safety of the POWs&#39; families and maintain regional stability. Seoul is currently reviewing additional measures in response to the breach.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Treasury Secretary Scott Bessent urged the Federal Reserve to maintain an &quot;open mind&quot; on interest rates, citing AI-driven 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