Economics
Bond Vigilantes to Trump: Be Careful, It Could Get Painful
- Plan to ‘Make America Great Again’ leans on public borrowing
- Jump in yields echoes pushback President Clinton faced in ’90s
Hatheway: Trump Means Fast Adjustment to Higher Rates
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When it comes to Donald Trump’s plan to “Make America Great Again,” the bond market is sending the president-elect a simple and unambiguous warning: be careful, or it’s going to cost you.
In the days after the billionaire scored a stunning victory with a mix of populist rhetoric and promises to cut taxes, rein in immigration and spend big on infrastructure, America’s financing costs have unexpectedly soared. Yields on Treasuries jumped, contributing to the biggest surge since the “taper tantrum.”