Scott Bessent Defends U.S. Debt Market Amid Rising Concerns
Treasury Secretary Scott Bessent is challenging growing concerns over U.S. debt, arguing that the bond market remains resilient despite rising federal obligations. With gross federal debt surpassing $40 trillion and public debt at $32.31 trillion, many investors are worried about increasing refinancing costs and fiscal sustainability. However, Bessent points to economic growth as a key factor in managing this burden. Bessent highlighted that the U.S. bond market was among the best-performing globally in 2026, despite rising yields on 10-year Treasuries near 4.73%. He emphasized real GDP growth of 1.5% for Q2 and noted contributions from consumer spending, investment, and exports as signs that the economy is not collapsing under debt pressure. The Treasury also announced a plan to increase buybacks of longer-dated bonds starting September 10 in an effort to improve market liquidity. Critics argue this move may be more about managing borrowing costs than addressing long-term fiscal challenges.
Topics: Federal Reserve Inflation Interest rates Treasury Secretary Scott Bessent U.S. debt