Treasury Secretary Scott Bessent defends the U.S. dollar's dominance and economic resilience, addressing concerns over rising debt yields.
Treasury Secretary Scott Bessent reassured markets about the strength of the U.S. economy and the dominance of the dollar, addressing concerns surrounding rising government debt yields.
Bessent emphasizes economic growth and dollar's global role.
Bessent defended the U.S. dollar, noting it constitutes 89.2% of foreign-exchange transactions, which highlights its ongoing supremacy. He also pointed to the increasing prevalence of dollar-pegged stablecoins and positive economic indicators.
Responding to critiques regarding Treasury bond buybacks, Bessent clarified that their aim is to enhance market liquidity and manage debt maturities rather than manipulate yields, especially as the 10-year yield approaches 5%.
In a recent statement, Bessent referenced insights from conservative commentator Lawrence Kudlow to underscore the dollar's enduring global influence. He also cited record median household incomes and a low official poverty rate, alongside job growth and a projected 5.1% GDP growth for the third quarter, as signs of economic resilience.
Amid rising Treasury yields, which have reached multi-year highs, Bessent's remarks come as the government has been repurchasing long-term bonds. Critics allege that this is an attempt to suppress yields; however, Bessent insists that the goal is to improve market liquidity.
Additionally, Bessent pointed to Saudi Arabia's withdrawal from the China-backed mBridge digital currency initiative as evidence of the dollar's dominance, despite the kingdom stating that its involvement was concluded after a scheduled trial.
