Katie Martin, Financial Times Markets, August 29 2026: Roula Khalaf’s weekly selection highlights the rising risk of financial repression in US bond markets. Donald Trump hinted at military intervention to support Treasury buybacks, suggesting the "ultimate intervention" if needed. Analysts note the US benefits from exorbitant privilege, getting away with market interventions others cannot.

While Mario Draghi’s "whatever it takes" strategy stabilized European borrowing costs through credibility, US credibility is currently short supply. The article argues the most durable solution is fixing underlying economic forces, citing Turkey’s rate hikes as a contrast. With inflation less of a concern and oil prices falling, Bessent’s purchases have stabilized yields.

However, luck may run out, increasing the chance the US resorts to financial repression—defined by bank capital requirements and capital controls to force low returns. It remains a dirty phrase in finance, viewed as un-American amid concerns over government spending and tax policy.