Svmuu News: Ed Yardeni, president and chief investment strategist at Yardeni Research, said he believes Warsh is attempting to lower borrowing costs by taking a hard line—that is, by pushing down government bond yields, which affect mortgage and auto loan rates.He noted that a new agreement has been reached between the Treasury Department and Federal Reserve aimed at suppressing 10-year Treasury yields, and that Bessent and Warsh are working as a team and have convinced Trump that the best way to lower borrowing costs is to take a hard line on inflation and raise interest rates when necessary.
Bessent recently acknowledged the influence of the bond market and Trump’s recognition of it. Speaking at the Economic Club of New York on June 23, Bessent said, “The bond market has toppled more governments than a mortar.”