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Trump Treasury secretary set off Wall St. revolt he can't control
AlterNet • • business
Key Points:
- Treasury Secretary Scott Bessent declared "I am the house now" to the bond market during a September 8 speech at Southern Methodist University, signaling a strong stance on U.S. government debt management.
- Journalist Joseph Zeballos-Roig argues that this bold position is backfiring, as the $32 trillion U.S. bond market is experiencing turmoil with 10-year and 30-year Treasury yields reaching multi-decade highs.
- Rising Treasury yields are driving up borrowing costs for consumers, with the average 30-year mortgage rate surpassing 7%, complicating loan refinancing and new borrowing for Americans.
- The bond market volatility is also impacting Wall Street by increasing corporate borrowing costs, which could limit company profits and economic growth.
- Higher Treasury yields pose financial challenges for the U.S. government, as they increase the cost of funding federal activities amid ongoing geopolitical tensions.
