Bessent's Plan To Increase The Amount Spent On Buybacks Of U.S. Debt Didn't Reassure Investors. Stocks Dropped.
Scott Bessent said thin August trading and poor 30-year liquidity could push Treasury buybacks above $4 billion per issue.
- Treasury Secretary Scott Bessent announced expanded buyback operations potentially exceeding $4 billion to ensure orderly trading during a thin summer market, characterizing recent volatility as "noise."
- The move follows 30-year Treasury yields reaching near two-decade highs, driven by inflationary pressure from rising oil prices and a quiet summer period affecting market conditions.
- Bessent signaled an "increased focus on fiscal consolidation" beginning end of this week, with a Monday press conference to detail the administration's plan to shift investor attention toward fundamentals.
- Despite public debt reaching $40 trillion, Bessent expressed confidence in the U.S. economy, citing 6.5 percent nominal growth and corporate revenue increases of about 12 percent.
- The administration plans to launch a fraud task force to save "hundreds of billions of dollars" by curbing state-level program waste, as programs are being "frittered away.
16 Articles
16 Articles
The U.S. Treasury Department expanded its buyback program to prevent a surge in long-term bond yields, but the market responded coldly due to structural debt issues and funding demands from the AI industry. Secretary Scott Besant dismissed this as short-term noise and proposed solutions involving fiscal consolidation plans and productivity improvements.
Treasury Doubles Down on Its Plan to Stabilize Financial Markets
Treasury Secretary Scott Bessent attempted to assuage concerns about inflation on Thursday. (AP Photo/Evan Vucci)The Trump administration’s attempts to stabilize financial markets fizzled on Thursday, leading Treasury Secretary Scott Bessent to suggest that a greater intervention may be on the way.The Trump administration will announce plans in the coming days to potentially increase the $4 billion program to buy back government bonds from inves…
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