The market immediately recognized the Treasury buyback as an attempt to manipulate prices rather than manage liquidity.
“By the next afternoon they had round-tripped to levels above where they started. The market's verdict was swift and correct: This wasn't liquidity management, it was price management.”
The long Treasury yield is the only remaining mechanism that enforces fiscal discipline on the United States government.
“The long-term Treasury yield is the most important price in the world. It is also the only fiscal disciplinarian the U.S. has left. ”
Bessent criticizes Senator Warren's understanding of foreign exchange markets and accuses media of lacking basic financial literacy.
“In her latest sciolistic letter to me, @SenWarren made it clear that she knows even less about foreign exchange markets than she does about banking. What is equally shocking, but not surprising: not a single member of the media mob has a rudimentary-enough level of financial https://t.co/0mmp2tapqJ”