logo
Trump, Truss and the bond market's bad vibes

Trump, Truss and the bond market's bad vibes

Irish Times3 days ago

Reassurance is rarely needed when confidence is intact, so the fact US treasury secretary
Scott Bessent
felt obliged to insist the US 'is never going to default' was alarming in itself.
His comments followed JPMorgan Chase CEO
Jamie Dimon
's warning that a 'crack' in the bond market 'is going to happen'.
US debt as a share of GDP will likely exceed its 1940s peak in the coming years, but that's not investors' only concern. There's also the Trump administration's uneasy relationship with economic norms – in February, president Donald Trump suggested the US may have less debt than reported due to fraud – and its willingness to think the unthinkable across many fronts.
That mindset found a kindred voice in former UK prime minister
Liz Truss
, who recently resurfaced in the Washington Post to offer advice to
Donald Trump
and blame her own implosion on the 'entire Davos elite'.
READ MORE
[
In war-torn nations, Trump's travel ban brings a new hardship
Opens in new window
]
[
Elon Musk says Trump's 'big, beautiful' tax and spending Bill is a 'disgusting abomination'
Opens in new window
]
Accusing markets and global institutions of conspiring to 'bully policymakers', she claimed her downfall was driven by a 'globalist economic establishment' opposed to tax cuts and economic freedom, and complained Boris Johnson was ousted 'with a view to installing the former Goldman Sachs banker Rishi Sunak'.
Far from being run by an elitist cabal, bond prices are shaped by everything from central banks to pension funds and ordinary savers. The 'dastardly goal', as the FT's Edward Luce dryly put it, 'is to invest in a safe asset'.
If bond markets are uneasy, the cause may be less shadowy conspiracy and more about what's now thinkable.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The Irish Times view on the US/Iran talks: difficult compromises lie ahead
The Irish Times view on the US/Iran talks: difficult compromises lie ahead

Irish Times

time3 hours ago

  • Irish Times

The Irish Times view on the US/Iran talks: difficult compromises lie ahead

Many actors are in play and a great deal is at stake in the latest round of talks between the United States and Iran on that country's nuclear enrichment programme. Israel is threatening to attack Iranian nuclear plants if the US fails to act, European powers accuse Iran of breaching agreed inspections, while Gulf powers exert a powerful influence on President Donald Trump to avoid a dangerous war by compromises that would open up large economic opportunities for the US. These bilateral talks, and the parallel nuclear negotiations in Vienna, which could open up a new round of United Nations sanctions, hinge largely on whether Iran can continue its nuclear enrichment programme or must close it down. Iran flatly refuses to stop enrichment, a demand spearheaded by Israel and supported by a strong lobby within Trump's entourage. He has recently shifted his position towards no enrichment, but if that remains unacceptable to the Iranians he faces a fateful choice between finding a compromise and opening a path towards possible war. Trump's first overseas state visit to Saudi Arabia, the United Arab Emirates and Qatar last month exposed him to their immense wealth and newfound regional power, both of which he values. Their desire for more stable relations with Iran cuts right across Israeli leader Binyamin Netanyahu's push for military action against Iran's enrichment. That feeds into the intense debates around Trump's administration on whether such a war would derail his presidency. There is scope for diplomatic progress if the political will is there. One suggestion from the US negotiator Steve Witkoff is that Iran's enrichment for energy and other peaceful uses be tied into a wider regional programme that would create security and economic incentives all round. Iran's refusal of that option could shift if it sees UN sanctions as a real possibility and chooses to avoid that. France, Germany and the UK should channel such pressure towards finding such a path to regional security as part of their wider critique of Netanyahu's war in Gaza. READ MORE

LA protests: how far will Donald Trump push the limits of presidential power?
LA protests: how far will Donald Trump push the limits of presidential power?

Irish Times

time8 hours ago

  • Irish Times

LA protests: how far will Donald Trump push the limits of presidential power?

US president Donald Trump's response to protests against immigration raids in Los Angeles - to send in troops - is in keeping with a broader theme of his second presidency so far - extending executive power and challenging institutional norms. But how far is Trump willing to go? American historian and academic Daniel Geary of Trinity College Dublin joins Hugh Linehan to talk about the events in LA and the pressure Trump 2.0 is putting on the American system. Daniel Geary is Mark Pigott Professor of U.S. History at Trinity College Dublin.

Elon Musk says he ‘regrets' some posts he made about Donald Trump
Elon Musk says he ‘regrets' some posts he made about Donald Trump

Irish Times

time14 hours ago

  • Irish Times

Elon Musk says he ‘regrets' some posts he made about Donald Trump

Billionaire Elon Musk has said he regrets some of the posts he made last week about US president Donald Trump , in a message on his social media platform X . 'I regret some of my posts about President Donald Trump last week. They went too far,' Mr Musk wrote. The two men began exchanging insults last week on social media, with the Tesla and SpaceX chief executive describing the US president's sweeping tax and spending bill as a 'disgusting abomination.' Mr Musk called for Mr Trump to be impeached, suggested his trade tariffs would cause a US recession, threatened to decommission SpaceX capsules used to transport Nasa astronauts and insinuated the president was associated with the late paedophile Jeffrey Epstein. READ MORE Mr Musk's post comes days after Mr Trump said his relationship with the world's richest man was over. I regret some of my posts about President — Elon Musk (@elonmusk) (c) Copyright Thomson Reuters 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store