Treasury Secretary Bessent said he agrees with Fed chair Kevin Warsh on bond
issues and that the 10-year Treasury yield has been essentially flat since Trump
took office. He said he has never tried to move bond markets, does not believe
the government can change bonds' equilibrium price and will not speculate on the
Fed's next step. He described core inf as still moderate and said the Fed
Traditionally does not raise rates in response to supply shocks. Bessent said he
has not yet bought any bonds and is working with the budget office on a fiscal
consolidation plan. He added the Treasury buyback program could make the US the
world’s top bond market and that hedge fund managers favor accelerating the
process. After Stanley Druckenmiller’s recent op-ed, Bessent said he spoke with
him and believes Druckenmiller lost money that day. Fitch has reaffirmed the US
credit rating.
