Bessent defends Trump economic policies, reveals plans to meet Chinese official

US Treasury Secretary Scott Bessent defended President Donald Trump's economic policies before the House Financial Services Committee on Tuesday. The hearing, initially focused on international finance systems and reforms, turned to more pressing matters such as financial markets, the economy, and the administration's actions against Iran.

Bessent revealed plans to meet with his Chinese counterpart this weekend, as Washington seeks to shut Iran out of Western financial systems. Protests erupted during the hearing, with demonstrators calling for an end to sanctions on Iran and the ongoing war. Bessent attributed rising bond yields to global issues, including higher oil prices, Federal Reserve rate hikes, competition for capital from AI spending, and concerns about the US fiscal trajectory.

He defended the Treasury's bond buybacks, claiming they kept yields from rising more and underscored US credibility. The Treasury's joint intervention with Japan to support its currency was also praised, as the US purchased yen to signal support for Japanese policies. Bessent highlighted a drop in the poverty rate and an increase in median household income under the Trump administration, attributing these positive trends to the administration's policies and contrasting them with the previous Biden administration's record.

He also defended the administration's stance on AI safety, emphasizing the need for creators to be held accountable for their creations while staying ahead of China in the AI development race.