Bessent needs to do more to rebuild market confidence
2026-08-23 22:22:33
According to CoinMeta, analysts say that Treasury Secretary Janet Yellen needs to take more measures to convince the market that the U.S. government is taking fiscal issues seriously. The signals sent by the bond market to Yellen in recent days indicate that it is not possible to simply cover up the $40 trillion in U.S. national debt. Yellen announced plans to increase the scale of long-term Treasury bond repurchases this fall and pledged to use the Treasury Department's "toolbox" to support the market. John Arnold, a former energy trader at Enron, said that the turmoil in the bond market this summer may just be an "quickly resolved episode," but the greater concern is that the lack of change in the U.S. fiscal situation will continue until a crisis is triggered. Tracy Chen, a global portfolio manager at Brandeis Investment Management, expressed her concern about Yellen's inability to curb long-term Treasury bond yields. The performance of the bond market shows that bond investors still do not trust her. Yellen needs to do more to convince investors that the Trump administration is taking fiscal issues seriously, but discussing tax increases or austerity before the mid-term elections in November would not be popular.
Source:Jin10 Data
This content is for market information only and does not constitute investment advice.
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