US May Need a Bond-Market Blowup to Cut Deficit, Market Veteran Says

After the November election, there were few people in the bond market more optimistic about how President Donald Trump, and his band of DOGE cost-cutters, would rein in ballooning budget deficits than Stephen Jen.

Six months later, Jen, a long-time market veteran who runs Eurizon SLJ Capital, is backing away from that call. In fact, he’s become so discouraged by the fiscal largesse he’s seen from the new administration that he’s started to wonder if the US needs a bond-market blowup akin to the one that did in UK Prime Minister Liz Truss’s government to force it to change course.