Bessent Is Stealing a Playbook He Didn't Even Like
The new Treasury secretary blasted his predecessor's debt issuance structure when she was in charge. Now, he wants to use it.
Finding balance.
Photographers: Victor J. Blue/Bloomberg and Chip Somodevilla/Getty Images
Before he became President Donald Trump’s Treasury secretary, Scott Bessent openly criticized his predecessor Janet Yellen for issuing more short-dated debt — a move he characterized as fiscally imprudent and at odds with the inflation-fighting goals of the Federal Reserve. Now that he’s in charge, Bessent has continued Yellen’s policies and said that any move to boost the share of longer-term Treasury securities is “a long way off.” He delivered his clearest explanation for the apparent double standard in an interview with Bloomberg Television on Thursday.
As he put it, the Treasury still plans to increase the share of longer-dated securities eventually, but it’s going to depend on the market and economic environment.