**ASX Set to Open Lower as Bessent Criticizes US Fed Policies**
*Based on reporting by James Thompson for the Australian Financial Review. Supplementary insights from Bloomberg and Reuters.*
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### Market Overview
As global markets digest fresh economic signals, the Australian Securities Exchange (ASX) is expected to open with losses, following weak leads from Wall Street. Investors are recalibrating their expectations after recent comments by leading fund managers, as well as ongoing uncertainties tied to monetary policy decisions by the United States Federal Reserve.
On the backdrop of volatile trading weeks, attention has sharpened on how central banks—particularly the US Federal Reserve—are shaping risk sentiment through their monetary maneuvers. This comes after significant critiques directed at the Fed, including notable remarks from Adam Bessent, the chief investment officer of Adams Funds.
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### Wall Street’s Tepid Performance
On Wall Street, major indices displayed a subdued performance:
– The S&P 500 ended marginally lower after an initially encouraging session.
– The Dow Jones Industrial Average registered slight gains but could not build strong upward momentum.
– The Nasdaq Composite saw mild declines, reflecting ongoing concerns in the tech-heavy sector.
Investors are wrestling with uncertainty over the timing and pace of interest rate adjustments, complicating market trajectories for risk assets.
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### ASX Futures Indicate Weaker Opening
Market data shows the ASX SPI200 futures contract fell 33 points, or 0.4 percent, indicating a weaker start for Australian equities. This reflects both domestic caution and the overnight cues from the United States. Sectors most vulnerable to rising rates, like technology and high-growth industrials, may see continued pressure.
– BHP and Rio Tinto were lower in US trading, suggesting miners may be under pressure at the local open.
– Financial stocks, sensitive to yield curve shifts, could also underperform as global interest rates remain uncertain.
– Defensive sectors such as healthcare are likely to offer some buffer, though not enough to offset broader losses.
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### Adam Bessent’s Critique of the Federal Reserve
Adding to the gloom were comments from Adam Bessent, who argued that the US Federal Reserve has repeatedly made mistakes in its policy stances over the recent cycle. Bessent accused the Fed of being too slow to respond to inflation risks, then pivoting too aggressively, creating instability for markets worldwide.
#### Key Points from Bessent’s Remarks:
– The Fed underestimated inflationary pressures in 2021 and 2022, initially suggesting that price increases were transitory.
– Once momentum built behind rising prices, the Fed shifted to aggressive rate hikes, leading to volatility in bond and equity markets.
– According to Bessent, this sequence of slow response followed by rapid tightening has “damaged market confidence,” especially for investors in long-duration assets.
– He called for steadier communication and more incremental policy moves, urging the Fed to avoid major swings that spook global markets.
– The uncertainty, he
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