All articles tagged with #scott bessent
Stanley Druckenmiller criticizes Scott Bessent’s plan to push down long-term US yields with larger Treasury buybacks, arguing that the market should set prices and deficits must be reduced. Bessent has expanded buyback capacity and even considered using the General Account, as US debt nears $40tn and deficits are forecast around $2tn, highlighting a debate over how to discipline yields.
A plan by Treasury head Scott Bessent to increase long-term debt buybacks has prompted economist Robin Brooks to warn it could trigger a yen-like devaluation of the dollar as deficits widen and yields swing, describing the move as “debasement” risk. Brooks argues such financial engineering shifts risk premia away from real fundamentals, while others (like Capital Economics) say its impact on the dollar is overstated and that yields may rise due to the large deficits and new debt. The debate centers on whether the buyback is a meaningful fix or a symbolic Band‑Aid in a stressed Treasury market.
As the Trump administration sharpens economic pressure on Iran, Treasury Secretary Scott Bessent relies on a shrinking inner circle while seven Senate-confirmed officials depart since 2025. The exodus—amid a broad, high-stakes policy agenda from debt management to sanctions—could strain the department’s ability to coordinate economic pressure, manage markets, and sustain a wartime-level sanctions effort, even as Bessent pushes for aggressive action against Iran and tighter financial diplomacy.
Scott Bessent seeks to calm a sell‑off in long‑term Treasuries by boosting buybacks from $2bn to at least $4bn and signaling the possibility of more tools; while the move may ease liquidity pinch points, it isn’t a substitute for policy on debt, and yields could remain pressured by deficits, global demand for capital, and geopolitical risk.
The U.S. Treasury unexpectedly raised its long-term bond buyback cap from $2 billion to at least $4 billion starting Sept. 9, a move that immediately boosted liquidity and pushed the 30-year yield down to about 5.20% as the dollar weakened. The shift aims to ease stress in a stressed bond market and suggests bigger bond auctions may be on the horizon, even as investors weigh inflation, borrowing needs, and the path of policy.
A rare US-Japan currency intervention was launched as the yen plunged to multi-decade lows, with Treasury Secretary Scott Bessent pledging the administration would do whatever it takes to support the yen and shield the American economy from volatility and higher borrowing costs. The move aims to reduce the risk of broader financial turmoil and inflation, though currency swings could still affect the prices of imported goods for Americans over time. The piece also discusses inflation hedges like gold, crypto, and private real estate as diversification options, citing CNBC, Reuters, the Federal Reserve Bank of New York, and Nikkei Asia.
Scott Bessent, a former hedge-fund star who helped Soros and Druckenmiller short currencies, now steered the U.S. Treasury in its first joint currency intervention with Japan since 2011, buying yen to bolster the currency and dampen U.S. Treasury yields as the national debt nears $40 trillion. His currency-market savvy and long-running ties to Japan informed the move, which aimed to support a key ally without triggering a broader sell-off of Treasuries. Critics called the step ill-advised, while supporters say it buys time amid macro pressures, reflecting a shift in policy under a new economic framework and the dollar’s structural role in the global system.
U.S. Treasury Secretary Scott Bessent urged the Senate to immediately pass the Clarity Act, arguing it would strengthen consumer protections and anti-money-laundering rules while providing regulatory certainty for digital-asset markets; he defended protections for decentralized developers and quoted Satoshi Nakamoto. The bill would establish a federal framework for crypto oversight (SEC and CFTC) and could legalize most crypto activity, though its path faces ethics fights and an approaching August recess.
Treasury officials announced that companies, nonprofits and state/local governments can donate public stock to the new child-investment accounts, with seed funding of up to $1,000 for about 1.4 million accounts (born 2025–2028) and more than 6 million accounts available; stock donations go to the Treasury to be allocated per donor instructions, while cash contributions will be invested in the SPYM ETF.
At a Senate Finance Committee hearing, Scott Bessent claimed groceries were going down, a remark challenged by Sen. Maggie Hassan who asked when he last shopped. Official data show grocery prices continue to rise (food-at-home up 2.9% year over year in April 2026 and up 0.7% month over month), with increases in beef, vegetables and tomatoes, underscoring that inflation remains a concern even as some officials argue it’s easing.
At a Senate Finance hearing, Treasury Secretary Scott Bessent argues that faster growth and tighter control of spending can stabilize Social Security without tax increases or benefit cuts, anchored by a 3‑3‑3 framework: about 3% growth, roughly 3% of GDP in deficits, and 3 million barrels per day more domestic energy. Democrats contend deficits and trust‑fund shortfalls remain a risk and growth alone may not solve the problem, while some Republicans hint at alternative Social Security accounts as part of the debate.
At a Senate Finance Committee hearing, Treasury Secretary Scott Bessent said he is performing the duties of the IRS commissioner, not acting in the role, after taking over duties in March. Democrats pressed for clarity on his authority and whether others affected by a former IRS contractor’s leaked returns would receive the same immunity tied to Trump’s settlement. The DOJ indicated a planned $1.8 billion ‘anti-weaponization’ fund would not proceed, and emphasized ongoing litigation governs protections for those taxpayers.
Treasury Secretary Scott Bessent said at a cabinet meeting that the Trump Accounts app will launch on all major platforms this Thursday. The Trump Accounts are a provision of the tax law that would give $1,000 to every newborn, invested by private firms and available when the child turns 18; nearly 6 million kids were already signed up as the formal July 4 rollout approaches.
At a White House briefing, Treasury Secretary Scott Bessent asked to be called 'Dr.' after receiving an honorary doctorate, then dodged questions on topics including Iran, the $1.8 billion Anti-Weaponization Fund, and Trump’s plan to feature his face on a $250 bill, signaling ongoing debates over titles, media coverage, and the Trump era’s broader controversies.
Treasury Secretary Scott Bessent blamed Elizabeth Warren’s September 2022 letter opposing Spirit’s merger with JetBlue for Spirit Airlines’ collapse four years later, arguing the Biden administration blocked a deal that could have preserved thousands of jobs; Spirit cited rising fuel costs tied to the Iran war and a failed government rescue as the immediate causes, while noting Commerce, not Treasury, was attempting to put together a bailout deal and that JetBlue’s involvement could have strengthened Spirit.