Bessent claims the Biden administration had the highest peacetime, non-recession deficit-to-GDP ratio in history.
“The Biden administration had the highest deficit to GDP in history when we weren't at war or weren't in a recession.”
Treasury defended buybacks for liquidity improvement while Bessent suggested operations could expand beyond the announced four billion dollar size.
“>The Treasury Department defended the buybacks as a way to improve liquidity and manage the government’s debt portfolio, while Bessent indicated the <a class=”
Artificially low long-term rates hide the true cost of debt and allow politicians to avoid addressing the problem.
“Suppressed long rates sugarcoat the interest-cost projections, shrink the apparent urgency, and let incumbents assure voters the debt is someone else’s problem,”
Bessent claims the Treasury can reduce debt through economic growth, a statement that financial markets received skeptically.
“The long bond buyback was perceived as somewhat farcical by the financial community, and when he went on to opine that we could grow our way out of the debt, I’m sure he knows better than that. I don’t think he’s thrown away his reputation but as headlines in the past 24 hours have been indicating, Wall Street, like Queen Victoria, is not amused.”