On October 3rd, the American news website Axios published a video of an interview with U.S. Treasury Secretary Bernanke. In the video, Bernanke responded to the 'market maker theory'.
Screenshot of the interview video by the American Axios news website
The host asked Besent, "Last month (September), you told the market, 'Now I am the dealer, betting against me is asking for trouble.' Do you regret saying that?"
Baisent replied, "I have no regrets. After all, the dealer doesn’t win every hand. The dealer deals with probabilities. Perhaps these words may hurt some fragile egos on Wall Street, but I always respect the market. You know, I always try to observe and think about what will happen next. If a person is arrogant, they will lose a lot of money."
At the same time, he denied the host’s statement that “the market responded.” “There was no such response. How could it respond? Interest rates increased, but oil prices also rose.”
Host asked a question: The Financial Times stated that Besent failed to calm down the "fever" in the US bond market. What did you learn from this incident?
Besent responded, “I have learned that the Financial Times is anti-American and anti-business. Those who are ‘feverish’ are actually them. They always try to cause trouble for America.”
He stated that he cannot control the bond market. “All I can do is try to slow down people and make them think.” “When I say ‘I am the dealer’, I mean that I have better information at my disposal.”
According to reports by The Wall Street Journal, on September 8, Besent emphasized, "I have asymmetric information; now I am the dealer."
He said, “When we intervene in the Japanese yen, I have a clear idea of what I need to do with the Japanese people, the Bank of Japan, and the Japanese policymakers. If you want to, then bet with me.”
