Overview
- Treasury Secretary Scott Bessent told the House Financial Services Committee on Sept. 15 that the U.S. economy and the dollar are strong and that administration policies are drawing capital to the United States.
- Market stress intensified during the testimony when the benchmark 10-year Treasury yield briefly rose above 5 percent, a level that increases mortgage and loan costs for consumers and raises borrowing costs for the government.
- Bessent defended recent actions including increased long‑bond buybacks, a coordinated yen purchase with Japan, and stepped up sanctions on Iran while also acknowledging deficit-driven pressure on yields.
- Analysts and lawmakers note structural limits to Treasury tools because buyback amounts are small relative to more than $40 trillion in national debt and the Treasury cannot set interest rates, a power the Federal Reserve holds.
- The hearing featured sharp exchanges with Democrats, on-site protests, and sharply divided media coverage that ranges from praise for Bessent’s market experience to criticism that his interventions have failed to stop rising yields and may have backfired.