Bessent Warns Bond Markets Can Overthrow Governments More Than Cannons

U.S. Treasury Secretary Scott Bessent warned that bond markets can overthrow governments more effectively than cannons, according to Bloomberg.

Bessent spoke at a New York Economic Club event on the 23rd, stating that President Donald Trump emphasized Federal Reserve Chair Kevin Warsh's independence and expressed confidence in Warsh finding the optimal path between inflation and growth. On CNBC on the 24th, Bessent positively assessed Warsh's move to reduce preemptive interest rate guidance, noting Warsh has consistently argued that markets should judge rates based on economic conditions.