Are the walls closing in on Bessent?
PARIS — U.S. Treasury Secretary Scott Bessent has a packed agenda. Alongside trying to crash Iran’s economy, he is concerned about the cost of servicing federal debt, which surpassed 100 percent of GDP earlier this year. Interest payments on America’s debt have shot up to more than $1 trillion this year, exceeding annual U.S. defense spending. To keep a lid on Treasury yields, Bessent — who spent…
U.S. Treasury Secretary Scott Bessent faces mounting pressures as he seeks to stabilize the American economy and curb the cost of servicing the federal debt. The debt burden, which has exceeded 100 percent of GDP, has led to soaring interest payments on America's debt, surpassing $1 trillion this year. To maintain control over Treasury yields, Bessent, a former financial market expert, is now attempting to shift market sentiment.
In his bid to stabilize the situation, Bessent initiated a joint intervention with Japan to support a weak yen. This move, however, posed a significant challenge for Japan, the largest holder of U.S. debt, which had been a consistent buyer of Treasuries for the past two decades. A forced sale by Japan of U.S. Treasuries would have been unprecedented and could have caused public backlash.
Bessent's latest strategy involves exploring alternative ways to raise the necessary dollars without relying on Japan's traditional buying habits. This indicates that the U.S. Secretary of Treasury is concerned about the stability of interest rates and the potential impact on the economy if Japan continues to maintain its current stance.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Are the walls closing in on Bessent? koreatimes.co.kr
