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Trump suggests military for bond markets
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Trump suggested using the military to intervene in bond markets. The remark raises doubts about coordination with Treasury Secretary Bessent.
Background
Bond yields have been climbing, unnerving politicians and markets. Treasury Secretary Scott Bessent has been trying to defend certain yield thresholds, but his efforts haven't worked so far. Trump's suggestion of military intervention came in response to a reporter's question about Bessent's efforts.
How it unfolded
- Aug 20, 2026Economist Steve Hanke says bond market is pricing in a 'deadly cocktail' for Treasuries, with yields passing Bessent's informal threshold.
- Aug 21, 2026Bessent appears on CNBC, touting the administration's 'big toolkit' for steadying the bond market but declining to detail options.
- Aug 22, 2026Trump suggests he could use the military for an 'intervention' on bond markets, saying 'If we have to use that, we will.'
Who’s saying what
- Official
- Treasury Secretary Bessent says the administration has a 'big toolkit' for steadying the bond market.
- Analysts
- Economist Steve Hanke says the bond market is pricing in a 'deadly cocktail' for Treasuries, indicating serious concerns.
Still unverified
It remains unclear whether Trump and Bessent are working from the same toolbox, as Trump's remarks suggest a different approach.