What could be inferred from Mr. Bessent’s

What could be inferred from Mr. Bessent’s remarks yesterday is that the reason why Mr. Trump supported the Fed’s January rate freeze is likely to be interested in lowering term premiums rather than simply lowering interest rates.

📌 What is term premium?
Interest rates on long-term government bonds (e.g., 10-year government bonds) consist of short-term interest rates + term premiums.
The term premium is the additional rate of return that investors demand in exchange for the risk from holding long-term bonds.
In other words, if this is high, long-term interest rates rise, and if it is low, long-term interest rates fall.

📌 Why is this important?
Even if the Fed raises interest rates, if long-term interest rates do not rise, the tightening effect on the economy is limited.
On the contrary, even if the Fed freezes or lowers interest rates, if the term premium is high, long-term interest rates can be maintained or rather increased.
Therefore, the interpretation that Trump’s support for the Fed’s rate freeze may not simply be due to a short-term stimulus, but rather to manage long-term interest rates is gaining steam.

📌 So what is Trump trying to do?
The average politician prefers policies that boost the economy in the short term, because the stimulus effect is quickly felt and is likely to lead to votes.
However, it has repeatedly been shown that Trump is willing to stabilize fiscal and inflation at the risk of short-term pain (the rate freeze keeps interest rates high right now).
Simply put, Trump is embracing the “real austerity” that politicians around the world usually try to avoid.

📌 Conclusion
Trump’s support for the Fed’s January rate freeze may not be just a political calculation, but a strategy to control long-term interest rates (period premium),

If so, it could be that Trump is considering long-term fiscal stability and controlling inflation over short-term stimulus.
If this is correct, it is a completely different approach from existing Biden-style policies.

In other words, I doubt that Trump is thinking about real long-term economic management, not just populism, and when this whole process is over, the debt-ridden United States will be a great country again.

The problem is that the vast majority of other countries, except the United States, are not willing and able to afford such reforms, and while there is room for a short-term rebound, the mid- to long-term outlook remains bleak.

Long-term investment is always the answer in the United States.