Friday after market close:
***Reporter on Bond Market: The yields have come back up since then. Have you talked to Bessent about another type of intervention.?***
***Trump: The ultimate intervention is our military. And if we have to use that, we will.***
This seems like an utterly nonsensical response.
My only guess that evenly remotely makes any sense is that Trump attributes rising rates to the Iran war, which is keeping oil and inflation expectations elevated. Accordingly, he believes ending the war (using the military) will bring long term treasury yields down.
But maybe I’m missing something. Or I’m giving Trump too much credit and he actually didn’t understand the reporter’s question or didn’t know how to address it.
Any other guesses on what Trump possibly meant? And what implications it might have for the market?