Stephen Miran, the top economic adviser for Donald Trump, worked to reassure leading bond investors at a meeting last week, following a strong uproar triggered by Wall Street against the presidential tariffs.
Economic Advisory Council Chairman Miran met with representatives from top hedge funds and other major investors at the White House’s executive office building on Friday.
Some participants found Friday’s meeting backfire, with two describing Milan’s comments on tariffs and markets as “incoherent” or incomplete, with one saying Miran “out of his depth.”
"There is a problem (Milan) and that's when it's a breakdown," said one person familiar with the meeting. "When you're with audiences who know a lot, the key points of the conversation will be broken apart very quickly."
The government's deregulation and tax cuts have further inspired another person familiar with the meeting.
About 15 participants included representatives from hedge funds Balyasny, Tudor and Citadel, as well as asset managers PGIM and BlackRock. The event convened by Citigroup coincides with the IMF's spring meeting.
"Government officials maintain regular contact with the private sector and industry groups to talk about the government's trade and economic policies," a White House official said when asked about the meeting.
Citi, BlackRock, PGIM, Balyasny, Citadel and Tudor declined to comment.
Trump's policies have triggered strong volatility in the U.S. stock and debt markets. U.S. government bonds were sold sharply after the president announced a steep "countdown" tariff on April 2. They stabilized after they suspended taxes for 90 days, but many investors remained on the edge.
The U.S. fiscal yield for the 10-year U.S. transaction price was 4.17% on Tuesday, down from its April 11 height of 4.59%. The price of yield turns to price.
Finance Minister Scott Bessent also addressed investors at a closed-door meeting last week. Bessent's comments suggest he hopes that a trade deal between the United States and China "in the near future" will help boost U.S. stocks.
But attendees at the meeting with Miran said he would be useless to turmoil in the market and to maintain government boundaries that tariffs would hurt U.S. trading partners more than American consumers. Milan also said the main purpose of the tariff is not to generate income, although additional income may be a benefit.
The Economic Advisers Council was established after World War II to provide advice to the President on domestic and international economic policies. However, the National Economic Commission is responsible for coordinating policies.
Before joining the government, Miran wrote about the merits of the so-called Mar-A-Lago Accord to make global markets more firmly centered around the U.S. trade and geopolitical interests.
His thought elements are fixed in a widely read note in November outlining the notion that the dollar's reserve currency state represents a "burden." These include weakening the holders of the U.S. government bonds in exchange for U.S. security guarantees.
Earlier this month, Miran gave a speech at the Hudson Institute think tank that did not specifically ask for a new global currency agreement, but did say that the money market was "distorted" and "the unfortunate side effects of providing reserve assets."
His solutions include the state should accept tariffs on U.S. exports without retaliation, or simply “write a check to the U.S. Treasury Department to help us fund public goods around the world.”
Bond investors came under fire during this period and when they launched Trump’s tariffs. Investors say sinking long-term bond prices and falling dollar suggest that the U.S. role as a market haven is under pressure.
One familiar with this situation says Milan is increasingly moving away from the ideas in the 2024 paper at a recent meeting with investors.
"He is retreating in full swing," said someone familiar with the matter.
Other reports from James Politics