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Stephen Miran, chair of the Council of Economic Advisers and a key figure in Donald Trump’s economic team, faced a tough audience last week as he met with top bond investors and hedge fund representatives at the White House’s Eisenhower Executive Office Building. The meeting followed a sharp sell-off in US government bonds triggered by the US President’s aggressive new tariffs, announced earlier in April, the Financial Times reported.

Miran’s attempts to reassure the roughly 15 attendees—which included representatives from major financial players like BlackRock, Citadel, Tudor, PGIM, and Balyasny—reportedly faltered under scrutiny. According to people present, his responses to investor questions around tariffs and market impact were described as “incoherent,” “incomplete,” and “out of his depth.”

“When you’re with an audience that knows a lot, the talking points are taken apart pretty quickly,” said one attendee familiar with the meeting. Another person said that while the administration’s tax cuts and deregulation agenda were viewed more favourably, Miran failed to ease widespread investor anxiety over the market consequences of the president’s trade strategy.

The meeting was held alongside the IMF’s spring gathering and was coordinated by Citigroup, though the bank declined to comment on the event.

Market volatility and investor alarm

Investor unease spiked after Trump’s April 2 declaration of steep “reciprocal” tariffs, which roiled equity and debt markets. U.S. Treasury yields rose significantly, with the 10-year yield hitting 4.59% on April 11 before easing to 4.17% on April 29 as the White House temporarily paused the new levies for 90 days.

While Treasury Secretary Scott Bessent was able to calm nerves in a separate closed-door session—hinting that a US-China trade deal could be reached “very soon”—Miran’s remarks offered little such comfort. He reportedly repeated the administration’s stance that tariffs would impact trading partners more than U.S. consumers and said any revenue generated from them would be a secondary benefit, not the goal.

Confusion over currency policy

Miran’s earlier economic writings have only added to investor scepticism. In a 2024 note, he floated the idea of a “Mar-a-Lago Accord,” suggesting that the US should use its economic and security leverage to shape global trade and currency rules more aggressively. His controversial proposal implied weakening the US dollar and pressing bondholders to help finance American defence in exchange for a security guarantee.

In a speech this month at the Hudson Institute, Miran did not reiterate the proposal directly but criticised global currency markets as “distorted” and suggested that exporting nations either accept US tariffs or “write cheques to Treasury” to fund American-led global public goods.

These remarks have worried bond investors, who see the rhetoric as undermining confidence in the US dollar and Treasury securities—two cornerstones of global financial stability. One

investor said long-term bond prices and the dollar's decline are signs that America's traditional status as a safe haven is weakening.

Backtracking begins

According to sources, Miran has recently begun distancing himself from his previous views, signalling a shift in tone during recent investor meetings. “He is in full-scale retreat,” said one person familiar with the situation.

Still, the damage to investor confidence may already be done. As the White House doubles down on its nationalist trade agenda, market participants are left grappling with a lack of clarity—and a growing fear that economic policy is being driven more by ideology than sound strategy.

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