All articles tagged with #us treasury
The U.S. Treasury plans to revoke Banque Misr UAE’s access to U.S. financial institutions over links to Iran, sanctioning a Dubai-based branch that handled about $1.8 billion for roughly 100 Iran-connected entities. This move is part of a broader sanctions campaign dubbed Operation Economic Outcast to sever Iran’s global economic ties, with additional sanctions already imposed on Bank Melli Dubai and related entities.
The US announced sweeping new sanctions on Iran and nearly 60 affiliated entities worldwide to sever Tehran’s oil-revenue networks and isolate Tehran, targeting a multinational procurement web linked to Iran’s nuclear, missile and cyber programs and five sustaining sectors—digital assets, technology, gold, aviation, and shipping. Iran denounced the move; China urged restraint, and Washington signaled it will give partners time to cut ties rather than blow up the global financial system.
The FT View argues that Scott Bessent's Treasury-market interventions are temporary bandages that fail to fix the deeper causes of market fragility: persistent deficits and inflation. While these moves may momentarily calm sentiment (e.g., supporting long‑dated bonds or currencies), they do not address credibility or debt levels. A sustainable cure requires credible fiscal restraint—aiming for deficits around 3% of GDP and longer-horizon debt management—because, without that, interventions will offer limited relief to long‑term yields and the world’s premier bond market will remain exposed to cyclical pressures.
Fortune reports that economist Robin Brooks warns the Treasury’s plan to buy back more long‑term debt could put the dollar on a path toward debasement and a devaluation spiral similar to Japan’s, while other analysts argue the move is largely a symbolic fix that won’t address the underlying deficit; the debate centers on whether yields will stay elevated and what this means for the dollar’s near‑term trajectory.
The Treasury will more than double the size of its longer-term debt buybacks, raising the cap to at least $4 billion and targeting 10–20 and 20–30 year maturities through Nov. 4 to provide liquidity amid market stress, a move that sent longer-dated yields lower on the news.
New Treasury financial statements show federal liabilities far outstrip assets, with unfunded Social Security and Medicare gaps pushing total obligations well above $136 trillion. Economists warn the U.S. is effectively insolvent and warn of a fiscal catastrophe, even as currency-issuing power remains. The piece advocates diversification into hard assets like gold (with talk of upside to $10,000/oz) and real estate via fractional platforms, plus gold IRAs and professional planning to shield retirement funds. In short, the article urges portfolio diversification and hedges against potential dollar depreciation while noting the ongoing policy limits and risks.
The U.S. Treasury is set to auction $25 billion of 30-year bonds at a projected yield around 5.24%, the highest long-bond borrowing cost since 2001, reflecting ongoing elevated rates driven by inflation, deficits and shifting demand for Treasury debt.
Market watchers say Japan’s yen weakness reflects policy misalignment rather than disorderly markets, with the latest intervention around ¥155–¥160 briefly stabilizing the currency while the BoJ kept rates unchanged. The move’s lasting impact is unclear, given Japan’s energy dependence, fiscal ambitions, and a policy stance seen as too accommodative. The unusually active US participation—financing via the Fed’s facilities and using euros to buy yen—deviates from past, more symmetric G7 actions and raises questions about motives (including curbing US yield pressures). Overall, durable relief will require credible macro reforms rather than FX band-aids.
The U.S. and Japan carried out a rare, coordinated intervention to buy yen and arrest its slide to a 40-year low, aiming to curb volatility and reduce risks to Asian markets; the move signals strategic concerns about regional currency weakness and could reflect U.S. Treasury interests in supporting Asia-linked assets, but sustained yen stability will hinge on BoJ rate hikes and credible policy from Tokyo.
Japan and the U.S. carried out a coordinated yen-buying intervention to curb disorderly moves, with Tokyo signaling willingness to act again and maintaining close contact with the U.S. Treasury; the yen had recently hit four-decade lows, and authorities indicated they may use the Fed’s FIMA repo facility in the future, while Treasury Secretary Scott Bessent confirmed the action and pledged further joint interventions.
The U.S. Treasury reportedly bought yen to shore up the battered Japanese currency, marking the first yen-buying intervention with Tokyo in more than a decade, with the New York Fed selling euros for yen on the Treasury’s behalf though amounts weren’t disclosed. Japan signaled potential policy action next week to deter speculative bets and stabilize markets, and indicated it can use tools like the Fed’s FIMA repo facility to access dollar liquidity as it presses to stem yen weakness.
At a Camp David cabinet meeting, a notepad visible to Reuters reportedly listed a plan to buy $5-10 billion in Japanese yen, fueling talk of potential US yen intervention as the currency weakens; reports also reference NY Fed actions and bank notices, though there’s no official confirmation of intervention since 2011.
Altimeter Capital's Brad Gerstner says Trump wants to automatically create Trump Accounts for all American children—potentially up to 70 million—within about 90 days, pending coordination with the Treasury, White House, and SSA. The program is currently opt-in, with eligible newborns receiving $1,000 funded by the Treasury; private donors have contributed millions, and proponents argue auto-enrollment could raise participation and impact.
The World Bank plans to phase out lending to China by 2031, capping new financing at up to $2 billion before Beijing graduates from the institution. The move, driven by bipartisan U.S. pressure and reflecting China’s growing economy, follows a decline in lending from about $2.4 billion in 2017 to roughly $750 million in 2025 and will end China’s borrower status with the Bank. Unlike Poland’s transition, the Chinese plan has no carve-outs for Ukraine or nuclear-energy financing, and it signals broader scrutiny of multilateral lending to rising economies.
The US has issued a 60-day waiver allowing Iran to export oil in dollars for the first time in decades amid ongoing talks over nuclear inspections and sanctions relief, and Trump warned he’ll “do what I have to do” if Tehran breaches the ceasefire; the move comes as Tehran asserts control over the Strait of Hormuz under international law and diplomacy continues to unfold around Iran’s oil and energy dealings.