What did Donald Trump do today?
He said he could use the military to bring down interest rates, and he wasn't kidding.
The yields on US Treasuries have gone up sharply over the past few months. Some of that is a result of the soaring debt the country holds, spurred on by Trump's now-permanent tax cuts for the very wealthiest Americans and corporations. More debt means investors demand more of a risk premium to insure against default. Another major factor is rising inflation: fixed-income investments like government bonds are vulnerable to having their value eroded by the effects of Trump's tariff spree and his war with Iran, so investors expect a better yield to compensate.
Trump was asked about this today, and his response was that he could "intervene" with the military. In the bond market.
Reporter on Bond Market: The yields have come back up since then. Have you talked to Bessent about another type of intervention.? Trump: The ultimate intervention is our military. And if we have to use that, we will.
— Acyn (@acyn.bsky.social) August 21, 2026 at 4:26 PM
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Q: Did you direct Secretary Bessent to intervene in the bond market?
TRUMP: No. Not at all. He's a very capable man, he wanted to do it. He's very good at it, good touch, very good natural touch for the bonds and the interest and, uh, he did that, yeah.
Q: The yields have come back up since then. Have you talked to him about another kind of intervention?
TRUMP: There are many types of intervention. That's one. The ultimate intervention is our military, and, uh, if we have to use that we will, yeah.
Some context here is important. The previous topic of discussion had been the ballroom he wants to build where the East Wing of the White House used to be. The trip he was departing for had nothing to do with the military. Trump kept a straight face the whole time he spoke. He did not give any indication at all that he understood why it would seem odd that he was talking about a military response to investors seeking higher premiums for US debt.
Why does this matter?
- Elderly people experiencing cognitive decline often engage in "masking" behavior by retreating to familiar words and phrases, even if they don't fit the situation.
- Anyone else talking like this at Trump's age would be facing a competency hearing if they didn't agree to start letting other people handle their affairs.