Scott Bessent, as Secretary of Treasury, may implement yield curve control during the next recession if long-term Treasury rates rise painfully high (e.g., to 6.5%), similar to post-WWII policy, which would keep nominal rates low while inflation rises, eventually leading to a 40-year bear market in bonds.
forecastpending
Speaker
Jeff GundlachEvidence Quote
“you might have a situation where say say long-term treasury rates during a weak economy actually go up, which is my forecast, and they go to maybe I don't know, let's pick a number, 6 6 and 1/2%. Wherever the pain point is. And Scott Bessent decides that what he suggested early in his tenure as Secretary of Treasury might might be a good idea to implement, which is yield curve control like they did in in the aftermath of World War II where the inflation rate was going up, but they just kept long-term interest rates very low. You had negative real real interest rates and that led to ultimately the 40-year bear market in long-term treasury bonds.”
Created: 8/12/2026, 6:25:56 PM
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