Market Voices: Bessent on Powell’s future, China; GM on EVs

Seeking Alpha’s daily roundup of statements, announcements and remarks that could impact markets, sectors or individual stocks.

• Treasury Secretary Scott Bessent said that the Aug. 12 deadline for most U.S. and Chinese tariffs to take effect will likely be extended.

“We’ll be working out what is likely an extension,” Bessent told Fox Business on Tuesday, according to CNBC. Bessent is currently in Stockholm for talks with China’s trade representatives.

• Bessent also said he doesn’t think Federal Reserve Chair Jerome Powell should quit. He would, however, like to see Powell conduct an internal review of the central bank’s operations.

“I know Chair Powell. There’s nothing that tells me that he should step down right now. He’s been a good public servant,” Bessent said during an interview with Fox Business. “His term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should.”

As for an internal review of the Fed’s operations, Bessent said such a move would provide Powell “a real chance…for his legacy, to be that he right-sized the non-monetary policy functions of the Fed.”

• General Motors (NYSE:GM) said it remains committed to expanding its EV business, despite reporting lower year-over-year earnings and revenue due in part to higher tariffs and changes in EV subsidy policies.

“Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star,” Chairman and CEO Mary Barra said in a letter to shareholders on Tuesday. “Overall, GM is well positioned to succeed in an ICE market that now has a longer runway,” she added.

Barra also noted that the company was re-shoring certain manufacturing to mitigate its tariff exposure.

“In June we announced $4 billion of new investment in our U.S. assembly plants to add 300,000 units of capacity for high margin light-duty pickups, full-size SUVs and crossovers. This will help us satisfy unmet customer demand, greatly reduce our tariff exposure, and capture upside opportunities as we launch new models,” she said in the letter.