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Krugman says Treasury chief Scott Bessent’s pro-Trump rhetoric has backfired

Nobel economist Paul Krugman argues that Treasury Secretary Scott Bessent’s attempts to praise President Trump’s economic record have damaged his credibility and failed to sway markets.

Paul Krugman, a Nobel laureate, criticizes Treasury Secretary Scott Bessent for abandoning economic realism in favor of flattering President Trump, including a March claim that putting Trump’s name on dollar bills would symbolize historic achievement. Krugman highlights Bessent’s dismissal of the widely recognized “K-shaped economy” and his reliance on selective wage data that experts say misrepresents income trends. He cites a recent attempt to buy back 30-year Treasury bonds, which only briefly nudged yields before they rose again, labeling the effort as superficial.

The piece also references a Partnership for Public Service report showing that nearly half of Trump-appointed Treasury officials have left, citing disagreements over tax-law enforcement. Krugman concludes that Bessent’s sycophancy has eroded his reputation, leaving the Treasury vulnerable if a genuine crisis arises.

Why it matters

The analysis warns that politicized economic messaging can undermine Treasury credibility and affect market stability.

In this story

Treasury secretarygaslightingK-shaped economy30-year Treasury bondscredibilityTrump administrationeconomic claimsbond marketsenior Treasury turnover
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