Bessent's Bond-Policy Gamble Tests U.S. Debt Credibility
Treasury Secretary Scott Bessent’s plan to buy back bonds to push down long-term yields sparked a brief market rally but drew skepticism from allies and economists who warn ongoing interventions could undermine the government’s debt credibility, raise borrowing costs, and blur policy signals. With White House support but growing market doubts, the response has included mixed signals in currencies and metals, underscoring concerns about whether Treasury can sustain such actions amid broader fiscal, economic, and geopolitical pressures.
