Bond market to Trump: Forget about tax cuts.
Republicans have just unveiled a proposal for massive tax cuts. That’s not going to happen ❌.
You can tell because the mighty bond market is already voting it down by pushing yields higher — it's happening in real time.
Just take a look at the 10-year Treasury yield — now above 4.5%. 📈
We saw the same thing happen in early April, when the bond market rejected Trump’s proposed tariffs. Yields spiked back then too, and Trump backed down on April 9.
We’re about to see the same thing happen again. Lawmakers will either have to withdraw the plan or face serious consequences if yields continue to surge.
Against the powerful bond market, politicians are powerless — even the president.
That’s because the U.S. is deeply reliant on being able to borrow at low interest rates. But that can only happen if fiscal policy is responsible.
When the math doesn’t add up — and it doesn’t — the bond market enforces discipline by demanding a higher yield to lend money to the U.S. That’s exactly what we’re seeing now.