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    Bessent, the US Treasury Secretary, is confident in maintaining dollar dominance and has faith in the Supreme Court.

    by VT Markets
    /
    Sep 9, 2025
    US Treasury Secretary Bessent is confident that the Supreme Court will uphold Trump’s tariffs. He also has a plan to strengthen the US dollar’s position in the market. Bessent will write about ways to keep the US dollar strong while the Supreme Court fast-tracks Trump’s case regarding the tariffs.

    Market Impact and Volatility

    With the Treasury Secretary’s belief in the tariffs being supported, we expect market volatility to increase. This Supreme Court case is the biggest upcoming event for traders. We recommend that clients look into protective measures against sudden market moves, especially in sectors like technology and manufacturing, which depend on global supply chains. If the court reinstates tariffs, it could lead to inflation, similar to what we saw between 2018 and 2019 when the Producer Price Index for imported goods spiked. Traders are already adjusting their positions in interest rate futures, anticipating a lower chance of a Federal Reserve rate cut this year. Companies unable to pass on higher costs to consumers may face renewed pressure. Bessent’s comments about maintaining the US dollar’s dominance are also important. Although the dollar’s share of global reserves has decreased slightly over the years, it still makes up nearly 59% of all central bank holdings, according to the latest IMF data. This strong commitment from the Treasury is likely to support the dollar’s position, leading to increased interest in options that favor the dollar’s strength against the Euro and Yen.

    Managing Binary Court Decision Risk

    In the coming weeks, the key strategy will be to manage the risks surrounding the court decision. Traders are using options on exchange-traded funds like the SPY to limit their risk ahead of the announcement. We are also examining VIX futures, as the expected volatility index may not fully account for the disruptions from a potential return to broad tariffs. Create your live VT Markets account and start trading now.

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