He's trying to take a fire hose

essentially to an ocean right now.

>> I'm going to create an AI image of like

Besset with a fire hose like just

spraying money out all over the ocean

because I have to. Now, you have talked

to Secretary Bess before uh several

times. What do you think his next move

could be uh to try to tamp down yields?

>> Well, and I called this the Bessant put,

Sazi. This is You've heard of the Fed

put. This is the equivalent of the

Treasury's put. He called a Treasury

twist to try to put a ceiling on bond

yields to make sure that consumer

borrowing costs don't continue to move

higher and the stock market continues to

move up. However, I wonder if Pandora's

box has been opened here because

yesterday the secretary came out and

said, "We are willing to buy back more

than the 4 billion that we said we would

through November in terms of long-term

treasuries." So, does that mean they're

going to go up to 8 billion? Are they

gonna start uh uh reducing the size of

auctions for longerdated treasuries?

He's trying to take a fire hose

essentially to an ocean right now. And

that's why we're not seeing as much of a

reaction in the bond market. And so the

question is, yes, he has a big toolkit,

but there are limits to this toolkit.

He's he can't do what the Federal

Reserve does. Ultimately, this comes

down to the debt situation and Bessant

recognizes that because he did say

yesterday that he along with President

Trump and the OM director are going to

announce fiscal consolidation measures

either today or Monday, both on the

revenue side and the cost side. The

thing is that they're going to have to

do this through executive action because

there's no appetite in Congress right

now to do those hard reforms that are

needed. And quite frankly, there hasn't

been for years. So we do have a problem

on the fiscal side. Clearly Doge sort of

petered out. So I'm curious to hear what

he's going to dig into there. What ideas

the president has on this front. The

secretary also though thinks that we

need to grow ourselves out of the

situation. And that's when we come to

the AI story and the productivity that

is really going to be needed here to

help this economy.

>> Jed, I'm totally getting off here and

I'll give you credit for this. I'm going

to create an AI image of like Besset

with a fire hose like just spraying

money out all over the ocean because I

have to. But I will credit you with that

idea. Victoria, let me get over to you

here. Uh the other thing I'm I'm like

eating popcorn watching this is that

Besson isn't some uh academic, you know,

he's not he wasn't out there before

getting this gig writing uh 500page

white papers just to hear himself talk

and write like this guy was in the

markets involved, which leads me to

believe he's he's about to get really

aggressive here on yields.

Yeah, Brian, I think it's important the

the analogy that you guys are talking

about the fire hose to the ocean. I

think that was actually quite

intentional by Bessant. I don't think he

in his mind he said, "Look, I'm going to

double the size of these buybacks that

we're doing and this is going to

fundamentally change the market." I

think he's out there saying this is a

signal to the market. I'm letting you

know that I do have the capability to do

some things. I want you to know that I'm

watching. I don't think he believes that

the long end of the curve that the

yields are actually matching

fundamentals. I mean you are having this

odd divergence between economic

surprises coming down that index coming

down and yields moving higher. So in a

$40 trillion debt market to double that

small amount that he had there

relatively small I think he knew it

wasn't going to make long lasting change

but it does make people sit up and pay

attention. Obviously, it's what we've

been seeing all along and I think it's

just his warning shot of what could

happen going forward. So, I think that's

part of the reason we saw yields move

back up a little bit yesterday after the

fact. They realized that, you know,

look, these are off therun treasuries

that they're doing. It's 30-year. It's

not like the 10 year on the run. Um, so

the intervention that people are talking

about, I think is quite minimal, but I

do think it is very significant in terms

of messaging. Uh, Victoria, how much

longer could the the the stock market

laugh in the face of the bond market?

>> You know, they've done it for longer

than what I thought they would be doing

it. If you recall months back, we would

have said when the 10ear hits 450, the

equity market would probably get

extremely nervous. And we've actually

seen that over the course of the last

year. That's kind of been that line in

the sand for the equity market. And here

we are at 470. And the equity market,

yes, there's some volatility. We had the

VIX go up with a 16 handle, but it came

back down and the market seems to be

doing pretty well. As long as earnings

continue to do well, as long as we see

this double-digit earnings growth, as we

see profit margins hold up, and we don't

see a collapse in the labor market, I

think you have an equity market that is

going to continue on this bull run. Is

it going to be straight, you know, up

and to the right? No. There's going to

be some give and take, some

consolidations like we've seen over the

past weeks. Um, but I do think the bull

market still has some room to run if

earnings continue to do