Paul Krugman 4/17/2025
« A confrontation between Trump and the Fed is probably only a few months — maybe even a few days — away. Some people in the administration have already floated the idea of a “Mar a Lago accord” that might include a forced conversion of short-term Treasuries into long-term bonds. Just discussing this is shocking to many because it would be a form of default on US debt ».
Chart of the week – Selling the US
Source: Bloomberg, World Gold Council
Note: cumulative daily returns of Bloomberg US Dollar Index and Bloomberg US Agg Index.