Bill Dudley, Columnist

Bessent’s Interest Rate Bet Could Be a Big Loser

Regular and predictable debt management saves the government money. Why abandon it?

July 15, 2025 at 10:30 AM UTC

Bill Dudley is a Bloomberg Opinion columnist. A former president of the Federal Reserve Bank of New York, he is a member of Coinbase Global's advisory council.

Consider the risks.
Photographer: Victor J. Blue/Bloomberg

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The US Treasury is considering making a bet on the future of interest rates, potentially breaking a long tradition of market neutrality in the hopes of reducing America’s large and rising debt-service costs.

It’s a risky proposition that could end up costing taxpayers dearly.