U.S. Treasury Secretary Scott Bessent said the data do not support claims that capital is leaving the United States, arguing that foreign demand for U.S. assets remains firm and that the dollar still sits on one side of 89.2% of global foreign-exchange transactions. He also pointed to the fact that major stablecoins are denominated in dollars as part of that broader picture.
Bessent said Treasury buybacks are intended to improve market liquidity and manage the maturity structure of federal debt, not to control the U.S. government bond market, which he described as being worth more than $30 trillion. He added that if investors were truly unwilling to buy Treasurys, that would show up in auction bidding data, but current figures still indicate strong foreign appetite for U.S. assets.
He also addressed recent asset-allocation moves, saying Norway had merely shifted part of its Treasury holdings into agency debt while remaining invested in U.S. assets, and that the Netherlands’ decision to move gold back from North American locations including New York and Ottawa reflected a custody preference. Bessent further cited the Atlanta Fed’s estimate of 5.1% annualized real GDP growth for the third quarter, along with continued job growth, expanding business investment and capital spending, and equipment investment in the second quarter of 2026 running nearly 20% above the level at the end of Biden’s term. He also criticized The New York Times for selectively omitting data that did not fit its narrative.
On Sept. 20, U.S. Treasury Secretary Scott Bessent said current data do not support the claim that capital is fleeing the United States. He said the dollar still appears on one side of 89.2% of global foreign-exchange transactions, foreign investors continue to hold large amounts of U.S. assets, and major stablecoins are also denominated in dollars.
Bessent rejects claims of Treasury market intervention
Bessent said the Treasury Department’s bond buybacks are meant to add market liquidity and manage the maturity structure of U.S. debt. They are not an attempt to control the U.S. Treasury market, which he said is worth more than $30 trillion.
He added that if investors were truly unwilling to buy U.S. government debt, that should be visible in actual auction bidding data. For now, he said, foreign demand for U.S. assets remains strong.
Comments on Norway and the Netherlands
Bessent also addressed recent moves involving U.S.-linked holdings. He said Norway had only shifted part of its U.S. Treasury allocation into agency debt, while the assets remained U.S. assets. He said the Netherlands’ decision to bring gold back from North American locations including New York and Ottawa reflected a domestic custody preference.
Growth and investment data cited
He also pointed to the Atlanta Fed’s estimate that U.S. real GDP will grow at an annualized rate of 5.1% in the third quarter. The latest data, he said, also show continued job growth, ongoing expansion in business investment and capital expenditures, and equipment investment in the second quarter of 2026 up nearly 20% from the level at the end of Biden’s term.
Criticism of The New York Times
Bessent criticized The New York Times for selectively ignoring data that did not fit its narrative. He said complex financial realities should not be reduced to language designed to serve a preset position.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. 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.
