Amid significant market shocks from U.S. President Donald Trump's tariff policy, Chairperson Steven Miran of the White House Council of Economic Advisers (CEA) attempted to restore order in a private meeting with major bond investors but was reportedly met with a loss of trust.
On the 29th (local time), according to the Financial Times (FT), Commissioner Miran met with representatives from major asset management firms such as BlackRock, Citadel, and PGIM, but his remarks on tariffs and market outlook lost consistency, leading to criticism of his capabilities from attendees.
The meeting took place in the Eisenhower Executive Office Building near the White House, hosted by Citigroup, and coinciding with the International Monetary Fund (IMF) Spring Meeting, inviting around 15 major investors. Some attendees evaluated that Commissioner Miran's explanation lost its persuasiveness. One attendee noted, "As soon as questions were posed, the atmosphere of the meeting rapidly cooled, and most of the audience had a deep understanding of the issues, making the gaps in his statements easily apparent."
According to the FT, Commissioner Miran defended the Trump administration's reciprocal tariff strategy, emphasizing that the primary goal of the tariffs is not revenue generation but rather to serve as a diplomatic lever. However, it is reported that there was no clear response to the sharp decline and volatility in the U.S. government bond market triggered by the tariff measures. In fact, after President Trump announced the imposition of high tariffs earlier this month, the yield on 10-year U.S. government bonds soared, and the U.S. market experienced increasing volatility, amplifying investors' anxieties.
Another official who attended the meeting said that Commissioner Miran has begun to distance himself from his past assertions of the "burden of the dollar as the reserve currency" and the "government bonds purchase strategy linked to national security." Miran has previously claimed in reports that the global reserve currency status is a burden on the U.S. economy and that countries holding U.S. government bonds should make additional contributions in exchange for assurances of U.S. security. However, at the recent meeting, he did not actively present this logic, leading to increased confusion among investors.
This meeting draws attention as a test of how much the radical trade and currency policies being pursued by the Trump administration can be accepted in the actual market. Meanwhile, to soothe the chaos following President Trump's tariff measures, Scott Bessent, the Secretary of the Treasury, also stated in a separate meeting that "there is a possibility that the U.S.-China trade negotiations could be concluded soon," as an effort to stabilize the market. However, the FT warned that such remarks could have only a short-term effect and might lead to a weakening of U.S. market leadership in the long run.