Analyst: Becent needs to “do more” to convince the market that the US government is serious about fiscal matters

In recent days, the bond market has sent a signal to Secretary of the Treasury, Besent, that the US Treasury debt of US$ 40 trillion will not be cleared under the carpet as if it were okay. Becent announced plans to scale up long-term national debt buy-backs this fall, committed to using the Department of the Treasury's huge “toolbox” to support markets, and spoke about the upcoming introduction of new measures to contain the growing United States debt burden. John Arnold, the founder of the former Enron energy dealer, billionaire, and charity Arnold Venture, said that the bond market turmoil this summer might end up being “another quick-busting episode”, but the greater concern is that the lack of change in America’s fiscal position will continue until the crisis is finally triggered. The manager of the Bradywin global portfolio, Tracy Chen, said that she was very nervous because Becent had failed to contain the rate of return on long-term national debt. The performance of the bond market showed that the bond vigilantes still did not trust him. Becent needs to do more to convince investors that the Trump government is taking America’s fiscal problems seriously, but before the mid-November elections, talk about raising incomes through tax increases or austerity will be unpopular。