President Donald Trump on Friday answered a reporter’s question about calming the turbulent bond market by saying he’ll use military force.
Trump was asked whether he had spoken with Treasury Secretary Scott Bessent about “another type of intervention” after bond yields climbed back to multi-year highs.
“The ultimate intervention is our military,” Trump said. “And if we have to use that, we will.”
The remark came as Trump seems to be escalating his military posture against Iran. Bessent told CNBC on Thursday that the U.S. likely would not need to restart large-scale combat with Iran, hours after Trump declared “economic D-day” on the country.
It also came shortly after Bessent announced that the Treasury would buy back far more of its own debt than planned. The step was meant to push interest rates down, according to reporting by CNBC. The Treasury acted after the rate on the government’s 30-year bond hit its highest levels since 2007, Reuters reported.
Trump distanced himself from Bessent’s move during his comments to reporters on Friday. Trump said he had not directed the intervention.
“No, not at all,” Trump said. He added that Bessent is “a very capable man. He wanted to do it.”
Bessent’s fix barely lasted a day. Rates quickly climbed back to where they started after Trump escalated his standoff with Iran and drove oil prices higher, according to reporting by CNBC. The nation’s total debt topped $40 trillion for the first time shortly after, which fueled investor anxiety over rising borrowing costs and deepening deficits, Reuters noted.
The Iran war is now in its sixth month. Trump has faced questions about how far he is willing to go. The Telegraph reported earlier this week that Trump was weighing a possible nuclear strike, a claim amplified by former Rep. Marjorie Taylor Greene, who said the administration had discussed the option in strategy meetings.
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