Treasury Secretary Scott Bessent defended the Trump administration's recent intervention in the bond market, pushing back on a critique from investor Stanley Druckenmiller. Bessent told CNBC that "Stan's a great investor, but what I would point out is that again, the U.S. bond market has been the best performing market since the president came in." Druckenmiller had called the Treasury's recent decision to more than double the size of its government debt repurchases a mistake.
Bessent noted that the U.S. bond market has performed well during Trump's presidency, and he added that bond yields in the U.S. have remained flat while they have been rising globally.
Druckenmiller criticized the Treasury's decision in a Wall Street Journal op-ed on August 24, arguing that "you can't buy your way out of a solvency conversation with liquidity tools." Bessent mentioned that he spoke with Druckenmiller since the piece was published, and their conversation went "fine."
