Trump Says Bessent Alone Decided Treasury Market Intervention
Summary
- Treasury Secretary Scott Bessent said the expansion of Treasury buybacks tied to intervention in the U.S. Treasury market was his own decision.
- Bessent said the U.S. government would double the size of its Treasury buybacks from earlier expectations and could expand them further.
- Market participants say that amid concern over U.S. Treasury yields, the fiscal deficit and inflation, expanding Treasury purchases alone is unlikely to halt the rise in yields.
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President Donald Trump said he did not direct Treasury Secretary Scott Bessent's recent intervention in the U.S. Treasury market.
Asked by reporters on August 21 whether he had instructed Bessent to intervene, Trump said, "Not at all," according to Reuters. He called Bessent "very capable" and said the Treasury secretary acted on his own and is "very skilled in that area."
Bessent announced on August 19 that the U.S. government would double the size of its Treasury buybacks from earlier expectations. On August 20, he said the purchases could be increased further. The steps were aimed at calming markets after long-term Treasury yields surged on concern over rising U.S. government debt and inflation above the Federal Reserve's 2% target.
Still, Treasury yields, which had fallen after Bessent's announcement, turned higher again on August 21 and erased most of the decline. In the market, some say expanding Treasury purchases alone will not be enough to halt the rise in yields as long as U.S. fiscal deficits keep widening and inflation pressures persist.
Doohyun Hwang
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