US Treasury’s Scott Bessent ‘will lose’ battle with bond markets, former mentor warns

Trump ally should cut budget deficit rather than try to suppress bond yields, says billionaire Stanley Druckenmiller Scott Bessent’s attempt to calm the bond markets and push down America’s cost of borrowing have attracted a rebuke from the US Treasury secretary’s former mentor. The billionaire investor Stanley Druckenmiller, who worked with Bessent at George Soros’s fund management firm in the 1990s, has warned that his former pupil is courting danger by trying to suppress US bond yields. Druckenmiller, writing in the Wall Street Journal, argued that the US should “let the bond market speak”, rather than expand its bond purchases in an effort to push up prices, and lower borrowing costs. “Governments defending prices against fundamentals always lose. The only variable is how much they spend before conceding,” he wrote. Druckenmiller argued that Washington should heed the rise in borrowing costs – measured by bond yields – and take steps to cut the budget deficit, rather than interfering in the market to push yields down again. “The long-term Treasury yield is the most important price in the world. It is also the only fiscal disciplinarian the US has left. Nei