Trump’s tax cuts and Musk’s Doge show they have no idea about US debt | Jeffrey Frankel

It is often said the tycoons know how to put America's fiscal house in order - but the smart money says that's not the case

When the US presidential election was called for Donald Trump, the yield on 10-year US government bonds increased from 4.3% to 4.4%, and the 30-year bond yield rose from 4.5% to 4.6%, with both remaining at those levels 10 days later.

As the bond market declined - higher yields mean lower prices - the stock market rose. Clearly, investors expect the next Trump administration to produce higher government budget deficits and more debt.