I posted earlier on Bessent:
The key point in his comments was this:
- focus is on bringing down 10-year Treasury yields, rather than the Fed’s benchmark short-term interest rate
Over the weekend Trump said it was ‘fine’ that the Federal Open Market Committee (FOMC) didn’t cut rates last week. Which was a bit of a surprise given his demands and rants that they do so. If the focus really is on the 10-year then perhaps Trump’s ‘fine’ makes sense.
Of course, getting the 10 year yield on a downward path implies moves to improve the US fiscal position, as well as inflation. So far we’ve had his partner, Musk, cutting Federal government programs like USAID, Federal employees and such. Which really doesn’t scratch the surface, most of the US spending is on healthcare, Social Security, and defence. Will Trump inflict the pain that his focus seems to imply? There is a barely a politician out there that would.
