Donald Trump suggests military intervention for bond market

President Donald Trump has suggested that the military could serve as an “ultimate intervention” to address volatility in the U.S. bond market. These comments followed a period of rising yields and unsuccessful attempts by the U.S. Treasury to stabilize long-term debt markets.

Treasury Secretary Scott Bessent recently led an initiative to at least double the purchase of long-term government bonds to enhance liquidity and ease investor concerns. While this move initially caused a temporary decline in borrowing costs, yields on 10-year and 30-year Treasuries rebounded quickly, challenging the effectiveness of the intervention.

When questioned by reporters about whether he had directed Bessent to intervene, Trump stated that the Secretary acted independently, describing him as a “very capable man.” Trump’s remarks regarding military force in response to financial market fluctuations have drawn significant criticism and mockery from political commentators and economists.