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Dario Perkins comments on the diverging views of experts regarding the intelligence of the bond market.
Perkins points out that Warsh views the bond market as a genius, while Bessent sees it as an idiot and considers himself the genius. Perkins expresses uncertainty about which perspective to trust.
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Perkins has previously questioned how markets and the Federal Reserve react to minor changes in monthly inflation, describing the response as disproportionate in one article. He has also argued that hiking rates is necessary to stabilize long-term bond yields, stating that failing to do so could hurt credibility, according to another piece. These observations frame his ongoing skepticism about market intelligence.