Bessent defends U.S. growth outlook and Treasury market, comments on Trump’s $5,000 payment proposal

News Editor

2026-09-15 16:14:10

U.S. Treasury Secretary Bessent told the House Financial Services Committee on Sept. 16 that the U.S. economy is regaining momentum, pointing to the Atlanta Fed’s GDPNow model, which estimates annualized real GDP growth of 4.4% for the third quarter. He used that forecast to argue that the economy can still withstand current interest-rate levels even as markets worry that high rates are starting to weigh on consumer spending and business investment. Bessent also addressed questions over the 10-year Treasury yield rising above 5%. He said the U.S. dollar remains a strong global reserve currency and described the two most recent Treasury auctions as among the strongest seen in the past two decades. In his view, the rise in long-term yields reflects global factors more than any loss of confidence in U.S. fiscal strength or financing capacity. On a separate and politically sensitive issue, Bessent said Donald Trump’s proposed $5,000 payment for every adult is a "very real" initiative. He tied the plan to whether Republicans retain control of both the House and Senate after the midterm elections, but did not provide details on funding, eligibility, or timing. He said there are ways to carry it out without increasing the federal deficit and added that the Treasury would work with House Speaker Johnson if legislation is needed.

U.S. Treasury Secretary Bessent appeared before the House Financial Services Committee on Sept. 16, using his opening testimony to defend the U.S. economic outlook, the Treasury market, and a politically sensitive proposal from Donald Trump calling for a $5,000 payment to every adult.

Bessent points to GDPNow forecast

Bessent said the U.S. economy is regaining momentum. He cited the Atlanta Fed’s GDPNow model, which currently projects annualized real GDP growth of 4.4% in the third quarter.

That figure is a high-frequency model estimate rather than an official government GDP reading. Still, with markets worried that elevated interest rates are starting to erode consumer spending and business investment, Bessent used the projection to argue that the economy can continue to absorb current rate levels.

Defense of the Treasury market

Asked about the 10-year U.S. Treasury yield moving above 5%, Bessent said the dollar remains a strong global reserve currency. He also said the two most recent U.S. Treasury auctions ranked among the strongest of the past 20 years.

He argued that the rise in long-end yields should be seen mainly as a reflection of global factors, not as a sign that markets are losing confidence in U.S. fiscal credibility or funding capacity. The statement also served as a defense of the Treasury Department’s recent issuance and buyback operations, with the government seeking to reassure markets that demand for Treasuries, auction functioning, and the dollar system remain stable.

Comments on Trump’s $5,000 payment plan

The most politically and market-sensitive portion of the hearing centered on Trump’s proposal to send $5,000 to every adult. Bessent said Trump’s intent to advance the plan is "very real."

He linked the proposal to whether Republicans can continue to control both the House and Senate after the midterm elections. Bessent did not disclose the source of funding, eligibility details, or a timeline for implementation. He said only that there are ways to structure the plan without expanding the federal deficit, and that if congressional legislation is required, the Treasury would work with House Speaker Johnson.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

7600

Disclaimer:

The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.

Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.