Former chief to Bessent: ‘Let the bond market speak’
When he worked for George Soros, Stanley Druckenmiller had a promising strategist by his side. His name was Scott Bessent — the current US Treasury Secretary. Now, the former boss thought it best to offer advice to his protégé, who has been facing a credibility crisis while trying to tame the steep rise in interest rates in the market.
Stanley Druckenmiller, former colleague of US Secretary of the Treasury Scott Bessent, has advised his former protégé on managing the US Treasury market. Druckenmiller stated that high interest rates are a sign of "problems ahead" and that artificially suppressing them will only increase threats. He argued that the market is functioning properly, reflecting factors such as 3-4% inflation, 4.1% unemployment, and a $40 trillion national debt, and that the Treasury's actions to buy back longer-term bonds are unnecessary.
Druckenmiller warned that if fiscal reforms are not made, the bond market will ultimately force adjustments, potentially in a disorderly manner.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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- Former chief tells Bessent: ‘Let the bond market speak’ braziljournal.com
