Andy Constan says Bessent has been gaslighting markets, his real goal with $128 billion in buybacks was to suppress long-term rates and run the economy hot
On August 19, they decided to increase the Treasury buyback by $128 billion, financing it with no change in any of the coupon issuance, so, by definition, financing it with T-bills. While we’ve been gaslighted by Bessent, sometimes he’s actually revealed his true self. His goal was to suppress long-term interest rates. Full stop. And so the question becomes, why? Why has Bessent decided that, with the economy growing gangbusters, with inflation above target, that it’s time to step in and suppress long-term interest rates? The answer is quite simple. Run it hot. And so that’s the status quo as of today.
#Bessent #Macro
On August 19, they decided to increase the Treasury buyback by $128 billion, financing it with no change in any of the coupon issuance, so, by definition, financing it with T-bills. While we’ve been gaslighted by Bessent, sometimes he’s actually revealed his true self. His goal was to suppress long-term interest rates. Full stop. And so the question becomes, why? Why has Bessent decided that, with the economy growing gangbusters, with inflation above target, that it’s time to step in and suppress long-term interest rates? The answer is quite simple. Run it hot. And so that’s the status quo as of today.
#Bessent #Macro
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Tu as atteint la fin 🎉