Is Scott Bessent the Fed chair Donald Trump always wanted?
Perhaps. But his effort to talk bond yields lower is likely to fail
Scott Bessent, the U.S. Treasury secretary, has proposed buying back tens of billions of dollars worth of long-dated government debt in an effort to lower bond yields. However, the tactic may not only fail but also risk tarnishing the government's reputation. The decision comes as bond yields have surged worldwide due to various factors, including high inflation, increased private borrowing, and concerns about the global debt situation.
Bessent's buybacks are aimed at putting his thumb on the scale and addressing the issue, but they may not be effective in the long run. The move is also seen as a response to the upcoming midterm elections and the administration's desire to appear more affordable, particularly in light of rising petrol prices and mortgage rates.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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