Bond markets have signaled in recent days that Treasury Secretary Scott Bessent cannot simply sweep $40 trillion in U.S. debt under the rug. He announced plans to expand long-term Treasury buybacks this fall, pledged to use the Treasury Department’s broad toolkit to support markets, and said new measures are coming to curb the growing U.S. debt burden. According to Odaily, former Enron energy trader, billionaire, and Arnold Ventures founder John Arnold said this summer’s bond-market volatility may end up being only another quickly fading episode, but the larger concern is that the lack of change in U.S. fiscal conditions will continue until it eventually triggers a crisis.

Brandywine Global portfolio manager Tracy Chen said she felt very nervous because Bessent has failed to curb long-term Treasury yields. She said the bond market’s performance shows that bond vigilantes still do not trust him. Bessent needs to do more to convince investors that the Trump administration is serious about U.S. fiscal problems, but talk of raising revenue through tax increases or austerity before the November midterm elections would be unpopular.