Comment: Trump's and Bessent's financial acrobatics are adventurous
The president and his finance minister are jeopardizing the credibility of American financial policy. They could trigger a tremor in the bond markets that would make the 2008 financial crisis look harmless.
Global bond markets are sounding an alarm as long-term interest rates rise worldwide, following the US. The yield on 10-year US Treasury bonds has surpassed 5%, while German government bonds are yielding around 3.5%, the highest since 2008. Rising inflation fears, increasing government debt, and concerns about the US Federal Reserve's ability to combat price growth are cited as underlying reasons.
US President Donald Trump's proposal to give each adult citizen $5,000 if the Republican party maintains control of Congress has added to market nervousness, sparking concerns about a loss of control over US government finances. The proposal is estimated to cost over $1 trillion, exceeding the country's defense spending.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Kommentar: Die Finanzakrobatik Trumps und Bessents ist abenteuerlich handelsblatt.com
