Treasury Secretary Scott Bessent’s latest maneuvering to manipulate the bond market led an MS NOW financial analyst to dredge up the former hedge fund manager's spotty history as a financier.
As the economy continues to struggle in the second year of President Donald Trump’s second term, Bessent has been a constant media presence, attempting to calm investors while at the same time dismissing their anxieties.
According to analyst Ron Insana, faith in Bessent is likely misplaced, as indicated by the market not responding to his latest proposal.
Speaking with “Money Power Politics” with host Stephanie Ruhle, a former hedge fund salesperson herself, Insana said Bessent’s moves should be viewed with skepticism.
“I think, you know, he is still considered more grown up than other people in the room,” Ruhle prompted her guest. “But I mean there aren't a lot of people with economic experience of the kind that the markets want in the Trump administration. So I think he is still seen as the least worst option, right?”
"I'm not sure Steph," the financial analyst replied. “I mean, look, he ran a hedge fund on his own from 2017 to 2023 that went from $5 billion in assets to $577 million, lost 18 of his 20 investors during that period. He did well when he was with George Soros and Stan Druckenmiller, two very well-known hedge fund managers.”
“I’m not sure he is as qualified as people originally thought,” he observed. “And certainly the execution of the bond buyback last week, which pushed bond yields down by, you know, just a very small fraction — and even this morning, the yield on the 10-year notes at 4.71 percent. Now he's saying he's going to use the Treasury's general fund to buy bonds; here's $1 trillion there, he can't use it all. And it's not having any impact this morning.”