Bessent smugly announced they are doubling to 4 from 2 billion the amount of mature US bonds they are buying back to "increase liquidity". in English, Trump has broken the bond market his goal was to lower interest rates to make it easier to refinance the debt, he literally said that out loud, but instead he's made the rates HIGHER increasing the debt in the process. We were at a 30 year high and that was without foreign countries piling on.
So Bessent and the treasury are using taxpayer money to buy bonds to artificially lower the rate, it fell sharply after announced, so that they can give incentive to people to buy it. They literally admitted they want short sellers to think twice about shorting again and getting caught in another buyback. They are literally saying don't short us, which is perfectly legal, Trumps buddies are making a fortune shorting, but you can't do it?
Experts say it significantly increases the odds of inflation going up because it's effectively printing money. 4 billion may not seem like much but it just allows Trump to keep throwing away money with less consequence as he can just prop up the market with taxpayer money. It's like what he did during Covid when they were literally buying stocks, individual stocks, to prop up the market before the election.
ONe expert outright said Bessent is a political actor this does no good at all he's just trying to help REpublicans in the midterms with a temporary move that will ultimately cause inflation to rise