Trump Says Treasury Market Intervention Was Bessent’s Decision Alone
Summary
- Treasury Secretary Scott Bessent moved to intervene in the U.S. Treasury market, but President Trump said he did not order the action.
- Bessent said he would double the size of the U.S. government’s Treasury buyback program from expectations and signaled that it could be expanded further.
- U.S. Treasury yields turned higher again after an initial decline, and there is a view that amid fiscal deficits and price pressures, Treasury purchases alone may not be enough to stop the rise in yields.
Forecast Trend Report by Period
President Donald Trump said he did not direct Treasury Secretary Scott Bessent’s recent intervention in the U.S. Treasury market.
Reuters reported on Aug. 21 that Trump made the remarks while speaking with reporters. Asked whether he had instructed Bessent to intervene in the Treasury market, Trump replied, “Not at all.” He added that Bessent is “a very capable person” who acted on his own and is highly skilled in that area.
Bessent on Aug. 19 unexpectedly announced that the U.S. government would double the size of its Treasury buyback program from earlier expectations. On Aug. 20, he said the purchases could be expanded further. The steps appeared aimed at calming markets after long-term Treasury yields surged amid growing U.S. debt and concerns about inflation running above the Federal Reserve’s 2% target.
Still, Treasury yields, which had fallen after Bessent’s announcement, turned higher again on Aug. 21 and erased most of the earlier decline. In the market, there is a view that expanding Treasury purchases alone will struggle to arrest rising yields as long as the U.S. fiscal deficit continues to accumulate and price pressures persist.
