Treasury Secretary Scott Bessent Expands Bond-Buying Program Amid Market Indifference
On September 11, 2026, Treasury Secretary Scott Bessent announced a significant expansion of the U.S. government's bond-buying program, increasing it to $6 billion in long-duration bonds—triple its usual size. The move aims to lower long-term yields and ease borrowing costs amid rising concerns over inflation and debt sustainability. President Donald Trump has been pushing for further interest rate cuts by the Federal Reserve, but current rates remain higher than desired. Despite Bessent's efforts, bond markets have shown little reaction, with 10-year Treasury yields continuing to rise above key thresholds. The market remains unconvinced due to concerns over U.S. debt levels exceeding $40 trillion and persistent inflation driven by Trump’s policies—often referred to as 'Trumpflation.' Additionally, the Fed's recent decision under Chair Kevin Warsh to remove forward guidance has increased uncertainty among bond traders. The Treasury Department holds approximately $950 billion in its General Account for such operations. However, analysts argue that this amount is insufficient given the scale of economic challenges and market expectations.
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Topics: bond-buying program Federal Reserve interest rates Treasury Secretary Scott Bessent