‘Strong dollar is not a price on a screen’: Bessent defends US currency as global transactions rise
Bessent said during testimony before the House Financial Services Committee that the Trump administration’s efforts to provide regulatory, tax, trade and energy certainty were attracting trillions of dollars into the United States.
US Treasury Secretary Scott Bessent defended the strength of the US dollar during a House Financial Services Committee hearing on September 15, emphasizing that the dollar's continued dominance as the global reserve currency was evidenced by rising transaction volumes rather than solely its exchange rate. Bessent stated, "A strong dollar is not a price on a screen; it is a set of behaviors," during his testimony.
He credited the Trump administration's efforts in regulatory, tax, trade, and energy policy for attracting billions into the United States. While noting some countries' reductions in US dollar holdings, primarily from Russia and China, Bessent maintained that the dollar's strength should be evaluated based on global economic behavior and demand for US financial assets.
The rise in US yields, reaching a 5% threshold for the 10-year Treasury bond, was attributed by Bessent to "global issues," though he did not specify further. The increasing bond yields reflect global concerns about government debt sustainability amidst rising borrowing costs. Bessent also addressed the administration's calls for greater transparency in Chinese debt restructuring and discussed ongoing private talks with China regarding Iran-linked financial matters, amid disruptions in the hearing by protesters advocating for an end to US sanctions on Iran.
Written by urgent.news from Live Mint's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Bessent calls US yen intervention "nominal," defends trade investing.com
- Bessent defends 'modest' cost of US-Japan joint yen intervention koreatimes.co.kr
